Jeff runs a bakery that is famous for its handmade sweet buns. Suppose the elasticity of demand for sweet buns is equal to 0.21, then an increase in the price of the buns:
a. will result in a decrease in the supply of sweet buns.
b. will result in an increase in the demand for sweet buns
c. will result in a decrease in the total revenue earned by Jeff.
d. will result in an increase in the total revenue earned by Jeff.
d
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If the central bank pursues a monetary policy that is more expansionary than what firms and people expect, then the central bank must be trying to
A) boost output in the short run. B) constrain output in the short run. C) constrain prices. D) boost prices in the short run.
The PPP theory says that in the long run the exchange rate between two currencies should move toward __________ the cost in each country of an identical basket of internationally traded goods
a. equalizing b. minimizing c. maximizing d. reducing to zero e. disequilibrating
How short is the short-run production period?
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, what will ultimately happen if genetic testing for certain illnesses like Alzheimer's becomes more common?
A. Only the people who are at high risk for those diseases will purchase insurance against those illnesses. B. Only the people who are at low risk for those diseases will purchase insurance against those illnesses. C. The people who are at high risk for those diseases will decline insurance against those illnesses. D. Only the people who are at high risk for those diseases will be fired from their current jobs.