The price elasticity of demand for a monopolist
A) is infinite since the monopolist is the only firm in the market.
B) decreases as more competition occurs in the market.
C) increases as similar products enter the market.
D) is undefined due to the lack of competition.
C
Economics
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Between 2007 and 2009, which of the following occurred in the United States, but not in the United Kingdom?
A) an increase in unemployment B) a negative demand shock C) a negative rate of inflation (i.e., deflation) D) a sharp increase in financial frictions E) a negative supply shock
Economics
When a bank needs to increase its reserves, it will
a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes
Economics