Here's what we know about last year's weekly demand for 2-night DVD rentals in the Village of Harmony: When P = $3, Qd = 100; at P = $5, Qd = 75; and when P = $7, Qd = 50. This year the village population has increased by 25%
What impact is this most likely to have? A) Each individual's demand for DVD rentals will increase.
B) Each individual's demand curve for DVD rentals will shift to the left.
C) The market demand curve for DVD rentals shifts left.
D) The market demand for DVD rentals increases.
D
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If expected inflation is 2%, the real interest rate is 7% and the economy is growing at a rate of 4%, the nominal interest rate is equal to
a. 9% b. 5% c. 7% d. 6% e. none of the above
The basis for designing an effective export strategy most likely begins with ________.
A) identifying and developing the firm's core competencies B) hiring local personnel in target markets to build the business C) enlisting the support of an export management company D) simultaneously targeting a large number of foreign markets
An example of perfect competition is when
a. many sellers compete and none control the market price b. several electronic companies form a cartel c. a seller decides to sell clothing, including shirts and jeans d. a seller is misinformed causing him or her to overprice goods
As the housing bubble collapsed, the combination of increasing interest rates and pessimism about future economic prospects:
A. increased both consumption and investment spending. B. decreased both consumption and investment spending. C. increased consumption and decreased investment spending. D. decreased consumption and increased investment spending.