If the price of business broadband is greater than that of residential broadband, all else equal,
A) business has greater price elasticity than residential.
B) residential has greater price elasticity than business.
C) both have positive income elasticity.
D) generally speaking, broadband is equally priced.
B
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How does each of the following shift the supply of loanable funds and the demand for loanable funds curves? What is the effect of each on the equilibrium real interest rate and equilibrium quantity of loanable funds?
a. Households' disposable incomes increase b. An increase in expected profit
A lower level of income causes the demand for money to ________ and the interest rate to ________, everything else held constant
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase
Total fixed costs decrease as output expands
a. True b. False
Refer to Table 7.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. The marginal revenue that Gladys receives from selling the fifth unit of output is:
A. $5, because that is the price per unit of output that Gladys receives. B. $5, because that is the quantity that Gladys sells. C. $25, because Gladys sells five unit of output at a price of $5. D. $1, because Gladys earns $1 more in revenue by increasing her output to five units from four units.