In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve
A) less; lower
B) less; higher
C) more; lower
D) more; higher
A
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If advertising makes demand of a product more elastic, it makes sense for a firm to
a. Decrease the price of the product b. Increase the price of the product c. Leave the price unchanged d. None of the above
Whenever a nation's currency is expected to depreciate because of various market conditions, the following situation exists regarding its forward rate for another currency:
a. there is a forward discount from the spot rate by the rate of depreciation. b. there is a forward premium from the spot rate by the rate of depreciation. c. there is no difference between the spot and forward rates. d. there is no predictable relationship between the spot and forward rates
The concept of diminishing marginal benefits ________ for goods that you like a lot. Suppose you have a flashlight that takes three batteries to power it. If you buy the batteries one at a? time, for which purchase will diminishing benefits set? in?
A. When you buy the first battery. B. When you buy the second battery. C. When you buy the third battery. D. When you buy the fourth battery.
Table 10.2Table 10.2 contains price, demand and cost data for the Capri Theater, the only first-run movie theater in a small town. What is its profit from students under the single price policy?
A. $150 B. $180 C. $450 D. $540