Bar owners often offer lower beer prices to women than they do to men. This will increase bar revenues:
a. if women have a unit-elastic demand for beer.
b. if women have an inelastic demand for beer.
c. if women have an elastic demand for beer.
d. if women have a negative income elasticity of demand for beer.
Ans: c. if women have an elastic demand for beer.
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One form of "cost-push inflation," economists refer to are
A. attempts by labor to raise wages that result in increases in prices. B. rising prices due to excessive levels of government spending financed by open-market operations through the Fed. C. rising prices due to excessive levels of aggregate demand. D. the rise in total sales revenue attributable to price-tag changes rather than to real volume changes.
Exhibit 9-7 Monopolist
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According to the information provided in Exhibit 9-7, if the Rudd Ice Company is a monopoly and is currently charging a price of $6, what would you advise Rudd to do?
A. Stay where he is currently operating because he is charging the profit maximizing price. B. Increase price and decrease output. C. Decrease price and increase output. D. Increase output and hold price constant.
The relatively small export-import sector in the United States began to grow significantly
A. after 1900. B. in the 1920s. C. in the 1950s. D. in the 1970s.
An economic benefit of capital outflows is that they
A. reduce domestic saving. B. increase domestic investment. C. reduce domestic unemployment. D. create future income payment inflows.