Picture a linear downward-sloping demand curve. If the price continues to fall, the price elasticity will
a. change from elastic, to unit elastic, to inelastic
b. remain unchanged whatever the price range
c. change from inelastic, to elastic, to unit elastic
d. change from unit elastic, to elastic, to inelastic
e. change from elastic, to inelastic, to unit elastic
A
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A) rocket scientists B) quants C) actuaries D) risk analysts
Which of the following would be a disadvantage of a sole proprietorship?
a. limited liability b. limited ability to raise funds to expand business c. too many people involved in decision making d. inability to produce more than one product e. inability to advertise
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = (M)2. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. Are you a risk taker?
What will be an ideal response?
Investment depends on the ________ interest rate because higher inflation will ________ the value of the dollars with which the firm will repay the loan.
A. real; increase B. nominal; increase C. real; decrease D. nominal; decrease