A kink in the demand curve facing an oligopolist is caused by:
a. rapidly rising marginal revenues.
b. excessive advertising.
c. the belief that competitors will follow price increases but not match price decreases.
d. the tendency of competitors to follow price reductions but not price increases.
d
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Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?
i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
A decrease in the liquidity of corporate bonds, other things being equal, shifts the demand curve for corporate bonds to the ________ and the demand curve for Treasury bonds shifts to the ________
A) right; right B) right; left C) left; left D) left; right
Old Navy has a discount store in a rundown neighborhood and charges about half what they charge for the same merchandise in a more fashionable neighborhood. The best explanation for why they charge less in the rundown neighborhood is that
A. they pay less rent. B. their customers can't afford to pay any more. C. they don't have to bother advertising. D. they are maximizing their profits at the prices they are charging.
A technological change that positively affects business expectations will _____
Fill in the blank(s) with the appropriate word(s).