If a firm is in an antitrust court case being accused of monopolizing a product, the firm would hire an economist to show
A) the cross-price elasticity of demand between the firm's good and another is positive.
B) the price elasticity of demand for the firm's good is highly inelastic.
C) the income elasticity of the firm's good is inferior.
D) the cross-price elasticity of demand between the firm's good and another is negative.
A
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The price elasticity of demand for a good is 0.2 . A 10 percent rise in the price will _______ the total revenue from sales of the good
A. decrease B. increase C. decrease the quantity sold with no change in D. not change
When the interest rate changes,
A) the demand curve for bonds shifts to the right. B) the demand curve for bonds shifts to the left. C) the supply curve for bonds shifts to the right. D) it is because either the demand or the supply curve has shifted.
Assume that the size of the underground economy increases both absolutely and relatively over time. As a result:
a) real GDP will rise more rapidly than nominal GDP. b) GDP will tend to increasingly understate the level of output through time. c) GDP will tend to increasingly overstate the level of output through time. d) the accuracy of GDP will be unaffected through time.
Taxes play an important role in bond returns because:
A. all interest from owning bonds is taxed. B. some bond interest is exempt from some government taxation, so after tax returns across bonds can vary considerably. C. all governments (federal, state, municipal) tax bonds similarly. D. only U.S. Treasury bonds are tax-exempt, so investors should always seek higher returns from other bonds.