The law of demand shows that:
a. there is an inverse relationship between price and quantity demanded.
b. the demand curve is positively sloped.
c. when the price of a good increases, the quantity demanded increases.
d. the supply curve is vertical.
e. individual demand is the same as market demand.
a
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When the price elasticity of demand for a good is 1.5, this means that a 1 percent change in price creates a ______ in quantity demanded
a. 0.1 percent increase b. 1.5 percent decrease c. 1.5 percent increase d. 15 percent increase e. 15 percent decrease
The largest source of federal tax revenue comes from
A. individual income taxes. B. social insurance receipts. C. corporation income taxes. D. excise taxes.
You own two different energy drink brands with similar elasticities: "Blue Cow" and "600 minute energy.". If you reduce the price on "Blue Cow", you can only increase your total sales if
a. Prices for "600 minute energy" are increased b. Prices for "600 minute energy" are reduced c. Prices for "600 minute energy" stay constant d. None of the above
In order to predict the marginal rate of return on investment, producers must forecast the interest rate
a. True b. False