If price decreases by 10 percent and quantity demanded increases by 3 percent, the price elasticity of demand will be
A) 3.
B) 0.3.
C) 3.33.
D) 300.
Answer: B
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Two firms are introducing an improved version of their toothpastes. They must decide whether or not to advertise their products. The table above gives the payoff matrix in terms of the economic profits they expect in each case
The payoffs are in terms of millions of dollars. a. What is the Nash equilibrium for the game? b. If they could cooperate, what strategy would they prefer? What would be the payoff?
Shortage means the same thing as scarcity
Indicate whether the statement is true or false
Everything else equal, if the ratio of bank assets to bank capital increases, the bank's return on equity should:
A. increase. B. remain constant. C. cannot be determined from the information provided. D. decrease.
Improved technology has reduced the risk of grain loss during storage. If wheat farmers expect wheat prices to rise substantially in about four months from now, which of the following is likely to be true?
a. The current supply of wheat will decline, as farmers store wheat in anticipation of the higher prices. b. The price of wheat breads is likely to decline in the future. c. The expectation of higher prices in the future is unlikely to have any impact on current wheat supply. d. The supply of wheat is likely to increase immediately.