The sales manager of a retail outlet suggests that the best way to increase customers is to have a sale. If a 10 percent price cut doesn't bring in enough customers, then he'll cut prices 20 percent. Increased cash flow should take care of profits. Do you agree? Explain
A price cut will (usually) lead to increased unit sales. However, if demand is inelastic, then the price cut will reduce total revenue. The pricing plan makes more sense if demand is elastic.
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The first English colonies in North America were established by:
a. Sir Humphrey Gilbert. b. Christopher Columbus. c. Capt. John Smith. d. Sir Walter Raleigh.
Is it ever rational for unions to strike if they know that their members will never be able to make up for the wages they lose during the strike? Explain
Which of the following theories argues that people form the most accurate possible expectations about the future using all information available to them?
a. The theory of adaptive expectations b. The theory of rational expectations c. The theory of sticky wage d. The theory of absolute advantage
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.