If a firm uses introductory pricing, it is likely ________ short run profit and ________ long run profit
A) minimizing; maximizing
B) maximizing; maximizing
C) maximizing; reducing
D) reducing; maximizing
D
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If the cross elasticity of demand between Coke and Pepsi is 2.02, then Coke and Pepsi are
A) complements. B) substitutes. C) normal goods. D) inferior goods. E) Both answers B and C are correct.
Banks do not need to keep all of their deposits on hand as reserves because
A) only a fraction of deposits are withdrawn at any one time. B) FDIC protects banks from excessive withdrawal demands. C) there is too much risk of bank robberies. D) they can always generate new reserves through the money creation process.
In 1995 in the United States, consumption expenditure was $5,152 billion, investment was $1,164 billion, government purchases of goods and services were $1,407 billion, and total exports were $855 billion. GDP equaled
What will be an ideal response?
Erin reduces the price of her handmade boxes by 10 percent. The following month the sale of this product increases 9 percent. As a result, Erin’s income for this month most likely ______.
a. decreased slightly b. decreased sharply c. increased slightly d. increased sharply