Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?
a. restaurants and MP3 players
b. electricity and natural gas
c. corn and satellite radio
d. rice and soybeans
c
You might also like to view...
Do deficits lead to inflation?
What will be an ideal response?
What does the long-run average cost curve show?
A) the interaction between average fixed cost and marginal cost B) the lowest average cost to produce each output level in the long run C) the distinction between long-run fixed and long-run variable costs D) the lowest average marginal cost of producing each output level at any time E) Answers A, B, and C are correct.
Fiscal policy consists of
a. taxes and interest rates. b. government purchases and defense spending. c. the money supply and taxes. d. taxes and government spending.
One example of labor-market discrimination is that a firm may be less likely to interview a job candidate whose resume clearly indicates he is not a good fit for the job
a. True b. False Indicate whether the statement is true or false