Producers want to calculate the price elasticity of demand because they want to:
A. know the goods and services for which consumers are most sensitive to price changes.
B. be able to predict the future preferences of their customers.
C. know that consumers will have the same response to a price change regardless of the good or service.
D. understand what goods their customers dislike the most.
A. know the goods and services for which consumers are most sensitive to price changes.
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Which of the following are policy instruments available to the Fed as it tries to achieve its macroeconomic goals?
i. government expenditure on goods and services and taxes ii. the government budget deficit or surplus iii. changes in the federal funds rate A) iii only B) ii and iii C) ii only D) i and ii E) i and iii
A firm in monopolistic competition makes its decisions on quantity and price by
A) taking price as given from the market and producing where MR = MC. B) taking both price and quantity as given from the market. C) producing where MR = MC and setting the price for this quantity from the demand curve. D) taking quantity as given from the market and setting the price for this quantity from the demand curve. E) producing where MR = MC and setting the price so that P = MR = MC.
Evidence suggests that the market ________ take into account the credibility of analyst's recommendations of IPOs that were underwritten at the analyst's investment bank because the performance of these recommendations was about 50% ________ compared
to recommendations made by other analysts at different investment banks. A) does; better B) does; worse C) does not; better D) does not; worse
The median-voter theorem can help explain one reason why politicians tend to change their position on a given issue over the course of an election from:
A. extreme to moderate. B. moderate to extreme. C. extreme to more extreme. D. one extreme to the other.