For a profit maximizing monopolist, if the MC = 10 and price is set to be 20, then the elasticity at this price is
A) -2.
B) -1.
C) -0.5.
D) 0.
A
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Which of the following statements is true?
A. The total demand for money is directly related to the interest rate. B. A lower interest rate raises the opportunity cost of holding money. C. The supply of money is directly related to the interest rate. D. Bond prices and the interest rate are inversely related.
Jane is willing to pay $80 for a pair of shoes. The actual price of the shoes is $50. Her marginal benefit is
A) $80. B) $30. C) $50. D) $1300.
Considering the concept of cross-price elasticity, if two goods are complements:
A. an increase in the price of one will cause a decrease in the demand for the other. B. an increase in the price of one will cause an increase in the demand for the other. C. a decrease in the price of one will cause a decrease in the demand for the other. D. the cross-price elasticity is positive.
An increase in the price level causes the value of money to _____. Therefore, people will want to hold ____ money, because the cost of their purchases has increased
Fill in the blank(s) with correct word