When Johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. This indicates that
A. demand was elastic.
B. demand was inelastic.
C. demand was unit elastic.
D. the demand curve was vertical.
Answer: D
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What is the principle of minimum differentiation?
What will be an ideal response?
Pieces of property that serve as a store of value are called
A) assets. B) units of account. C) liabilities. D) borrowings.
The real interest rate is:
A. the everyday notion of the interest rate. B. adjusted for inflation. C. the amount of interest the bank pays you for saving or charges you for borrowing. D. the actual average interest rate in the economy.
One way to achieve efficiency in a market with a negative externality is
a. to raise the market demand curve to the position of the marginal social cost curve b. to apply the Coase theorem c. to lower the marginal social cost curve to the position of the market supply curve d. to eliminate all side payments e. to raise the market supply curve to the position of the marginal social cost curve