Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50% chance that it will be colder than average next year, and a 25% chance that it will be warmer than average. If you purchase one share of ABC stock and one share of XYZ stock, your expected gain will be ________.
A. $0 B. $40 C. $10 D. $15
Growth in the standard of living is measured by the increase in
A) real GDP. B) the Rule of 70. C) employment. D) real GDP per person. E) consumption.
Which contracting party gains from the use of a more sophisticated contract?
a. The principal, who offers the contract. b. The agent, who accepts the contract. c. Both parties may lose. d. Both parties gain equally.
The "monopoly" in monopolistically competitive markets is most likely a result of firms having some pricing power due to product differentiation
a. True b. False Indicate whether the statement is true or false