Suppose that ABC Beer Brewer faces a linear demand curve and that the current price for its beer is set at a point where the price elasticity is 1.6. If ABC Beer Brewer increases the product price,
A. the demand becomes more elastic and total revenue increases.
B. the demand becomes less elastic and total revenue increases.
C. the demand becomes more elastic and total revenue decreases.
D. the demand becomes less elastic and total revenue decreases.
Answer: C
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If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
A. fall, causing households and businesses to hold more money. B. rise, causing households and businesses to hold more money. C. fall, causing households and businesses to hold less money. D. rise, causing households and businesses to hold less money.
If there is unplanned inventory decumulation there is excess
A) demand for bonds. B) supply of bonds. C) demand for commodities. D) supply of commodities.
In the following figure, the opportunity cost (OC) of producing at C, rather than at B, is ________, whereas the opportunity cost of producing at D, rather than at C, is ___________.
a. 7 thousand robots; 4 thousand robots b. 9 thousand robots; 7 thousand robots c. 2 thousand robots; 2 thousand robots d. 3 thousand robots; 3 thousand robots e. 3 thousand robots; 2 thousand robots f. 2 thousand robots; 3 thousand robots
If your assets are highly liquid, this means you can make transactions on short notice.
Answer the following statement true (T) or false (F)