Which of the following is likely to have the most price elastic demand?
a. milk
b. sailboats
c. good X in the short run compared to good X in the long run
d. gasoline
b
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In 1913, Congress and the President did not envision that the Fed would control
A) the money supply. B) discount loans. C) lender-of-last-resort activity. D) broad control over most aspects of money and the banking system.
Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Happy Campers' expected profits?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) $10.50
B) $11.25
C) $6.75
D) $7.25
Other things being equal, the relationship between price and quantity supplied is
A) negative. B) constant. C) positive. D) non-existent.
Managers of profit centers earn more when their divisions
a. increase their sales and decrease their costs b. decrease their sales and increase their costs c. increase the costs of the components for which they are responsible d. None