The nation's largest cable TV company tested the effect of a price increase for premium sports channels. It increased prices 10% and found that the number of customers decreased by more than 40%. This means:
a. the demand curve for the premium sports channels shifted to the right.
b. the supply curve for premium sports channels shifted to the left
c. the demand for premium sports channels is elastic in this price range.
d. the demand for premium sports channels is inelastic in this price range.
c
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When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is empty of customers c. shopping when the car lot has few cars left unsold d. shopping toward the beginning of the month
To the extent that current profits are directly related to future profits, a high price/earnings ratio would indicate that stocks are
a. inexpensive. b. expensive. c. going to increase in value in the future. d. most likely to fall in value if interest rates decline.
First, briefly explain what the user cost or rental cost of capital represents. Second, explain what factors would cause an increase in the user cost or rental cost of capital
What will be an ideal response?
Define the Taylor rule.
What will be an ideal response?