What is odd pricing? Why do some merchants use odd pricing?
What will be an ideal response?
Odd pricing is the practice of charging prices that aren't round numbers, especially prices ending in 9 or 5 rather than 0. One important reason for odd pricing is to give buyers the illusion that they are paying significantly less: $99.99 seems a lot less than $100 to some people.
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Which of the following is likely to happen if the level of technology used in an economy improves, assuming all else equal?
A) The economy's labor demand curve will shift to the right. B) There will be a downward movement along the labor demand curve. C) The economy's labor demand curve will shift to the left. D) There will be an upward movement along the labor demand curve.
Imagine that someone offers you $100 today or $200 in 10 years. You would prefer to take the $100 today if the interest rate is
a. 4 percent. b. 6 percent. c. 8 percent. d. All of the above are correct.
Which of the following is NOT a characteristic of a monopoly?
A. A great deal of political power B. No close substitute products C. The ability to make an economic profit in the long run D. Operating at the lowest point on the ATC curve
If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc) equals:
A. 9.0. B. 0.9. C. 1.0. D. 0.1.