You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues from that product, you should:
A. Increase the price of the software
B. Decrease the price of the software
C. Hold the price of the software constant
D. Increase the supply of the software
A. Increase the price of the software
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Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be plums (high quality)?
A. 10/25 B. 10/35 C. 25/35 D. None of the cameras sold will be plums.
Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table, its marginal revenue is positive
A. at all prices above $3.00. B. at all prices. C. at all prices below $3.00. D. at all price but $3.00.
Give three reasons why the U.S. economy is more stable since 1950
What will be an ideal response?
Which of the following is likely to decrease the supply of U.S. dollars in the forex market?
A. If foreign interest rates are low relative to U.S. interest rates B. If investors' confidence in foreign economies increases C. If U.S. consumers prefer foreign goods to U.S. goods D. All of these will increase the supply of U.S. dollars.