What is the effect of a decrease in the price of potato chips on the market for pretzels?
a. Both equilibrium price and equilibrium quantity rise.
b. Both equilibrium price and equilibrium quantity fall.
c. Equilibrium price rises and equilibrium quantity falls.
d. Equilibrium price falls and equilibrium quantity rises.
e. Equilibrium price and equilibrium quantity remain unchanged.
B
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For which of the following products is demand likely to be least elastic with respect to price?
A. Green beans B. Vegetables C. Food D. Green vegetables
Suppose the extra cost to a pet store of advertising one additional day each week in the local newspaper is $450
Then, the pet store should advertize that one additional day each week if doing so brings in additional revenue of $450 or more each week. Indicate whether the statement is true or false
The devaluation of a currency results in a(n):
a. initial increase in trade balance, but an eventual decline in trade balance. b. permanent decline in trade balance. c. permanent increase in trade balance. d. initial decrease in trade balance, but an eventual increase in trade balance.
If the price elasticity of demand is elastic, then:
A. Ed < 1. B. consumers are relatively not very responsive to a price increase. C. an increase in the price will increase total revenue. D. there are likely a large number of substitute products available.