As the price elasticity of demand for an item increases, so does the firm's ability to mark up the price of the item above average cost
Indicate whether the statement is true or false
FALSE
You might also like to view...
The U.S. economy has become a less open economy over the past 50 years.
Answer the following statement true (T) or false (F)
If the financial innovations such as ATM machines make money demand less elastic than it was before, then
a. the LM curve will become steeper. b. the LM curve will become flatter. c. both the IS and LM curves will become flatter. d. the LM curve will shift to the left.
All other factors held constant, when McDonald's raises the price of its Quarter Pounder by 50 cents,
A) there is likely to be a decrease in the quantity of Taco Bell's Chalupas demanded, assuming the Quarter Pounder and Chalupas are substitutes. B) there is likely to be an increase in demand for Taco Bell's Chalupas, assuming the Quarter Pounder and Chalupas are substitutes. C) there is likely to be a decrease in demand for Taco Bell's Chalupas, assuming the Quarter Pounder and Chalupas are substitutes. D) there is likely to be an increase in demand for McDonald's Quarter Pounder, assuming the Quarter Pounder and Chalupas are substitutes.
The text describes various pricing strategies that oligopolists use. Which of the following is not one of these strategies?
a. game theory b. price leadership c. kinked demand d. cartel e. trial and error