Because Product X has a very small, positive income elasticity of demand, it is likely that product X is a
A) luxury.
B) necessity.
C) product with many good substitutes.
D) product with many good complements.
B
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Small firms borrow from "monitoring-intensive" financial intermediaries in __________ financial systems
A) banking-oriented B) markets-oriented C) banking- and markets-oriented D) socialist
Which of the following is FALSE about indirect price discrimination
a. The firm is able to identify each customer's willingness to pay b. The firm is able to charge different prices to the different value customers c. The firm is be able to prevent arbitrage d. All of the above
Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?
If the price of Diet Pepsi rises, what happens to the price of Diet Coke?
A. It will rise. B. It will fall. C. It will remain the same. D. There is no way of telling what will happen to the price of Diet Coke.