The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. This good and good R are
A. complements since the coefficient on PR is negative.
B. substitutes since the coefficient on M is negative.
C. complements since the coefficient on M is negative.
D. substitutes since the coefficient on PR is negative.
E. none of the above
Answer: A
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Refer to the table above. If the opportunity cost of time increases to $60 per hour, renting which apartment will minimize Ryan's total cost every month?
A) 2 B) 3 C) 4 D) 5
Pricing is made difficult by
A) firms having multiple products. B) concerns about the response of competitors. C) concerns about consumer linkages of price and quality. D) all of these choices make pricing difficult.
Refer to the diagram, which is a rectangular hyperbola, that is, a curve such that each rectangle drawn from any point on the curve will be of identical area. If this rectangular hyperbola was a demand curve, we could say that it would be:
A. elastic at high prices and inelastic at low prices.
B. elastic at low prices and inelastic at high prices.
C. impossible to generalize about its elasticity.
D. of unit elasticity throughout.
Identify the four major instruments of monetary policy.
What will be an ideal response?