Getaway Spas wants to prevent Relax with Us from entering the luxury spa market. If Getaway Spas advertises that it will always undercut any competitor's price, the effect of advertising ________ Getaway Spas' profits due to its cost and ________ Getaway Spas' profits due to a(n) ________ in its demand.
A) decreases; decreases; increase
B) decreases; increases; increase
C) increases; increases; increase
D) decreases; decreases; decrease
B) decreases; increases; increase
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517The first hour John spends cleaning windows costs him ________ that he could have earned in the grocery store.
A. $18 B. $14 C. $2 D. $7
In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,
A) the curve will shift rightward. B) the curve will shift leftward. C) there is a movement along the curve. D) the curve will be unaffected. E) None of the above answers is correct because the graph assumes that the price of pecans does not change.
Automatic stabilizers can return real GDP to its potential level without any government intervention
a. True b. False Indicate whether the statement is true or false
The reduction in aggregate demand caused by deflation:
A. further reduces prices, causing a deflationary spiral. B. further reduces prices, causing aggregate supply to shift left back to long-run equilibrium. C. will decrease production and increase prices, causing inflation to adjust the price level. D. will decrease production and increase prices, causing a deflationary trap.