Refer to the scenario above. What is likely to be the impact on Firm B's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 10% increase in sales
B) A 7% increase in sales
C) A 2% increase in sales
D) A 5% increase in sales
A
You might also like to view...
Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is
A) 0.5. B) 0.75. C) 1.33. D) 2.00.
Surplus refers to:
A. a way of measuring who benefits from transactions and by how much. B. the difference between the price the buyer would have paid and the actual price paid. C. the difference between the price the seller would have accepted and the actual sell price. D. All of these statements are true.
Which of the following taxes is based on the ability-to-pay principle?
a. Road taxes paid by the buyers of gasoline b. Progressive income taxes that pay for scientific research c. Payroll taxes that pay for Social Medicare d. Education taxes paid by parents
When existing firms in a competitive market are profitable, an incentive exists for
a. new firms to seek government subsidies that would allow them to enter the market. b. new firms to enter the market, even without government subsidies. c. existing firms to raise prices. d. existing firms to increase production.