Those goods having a calculated income elasticity that is negative are called:
a. producers' goods
b. durable goods
c. inferior goods
d. nondurable goods
e. none of the above
c
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The price elasticity of demand for nursery products is -10. The advertising elasticity of demand is 0.4. Using the "Rule of Thumb for Advertising," the profit maximizing level of advertising will be set at ________ of sales
A) 0.25 percent B) 0.4 percent C) 4 percent D) 40 percent
Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio. b. Selling bonds in the open market. c. Increasing the discount rate. d. None of these.
Which of the following are macroeconomists most interested in encouraging in order to increase the standard of living?
A. inflations B. trade-offs C. ideas.
Use the following general linear demand function below:Qd = a + bP + cM + dPRwhere Qd = quantity demanded, P = the price of the good, M = income, PR = the price of a good related in consumption. The law of demand requires that
A. b < 0 and P < 0. B. b < 0. C. P < 0. D. a < 0 and b < 0. E. a < 0.