A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold the same amount of milk per week (165 gallons). Since everything else remained the same, we would say the

Refer to Scenario 18.1. What should the fishermen do if they know the factory will maximize profits and no negotiation is possible?

A) Install a treatment plant. B) Do not install a treatment plant. C) It makes no difference if the fishermen do or do not install a treatment plant. D) Install a filter. E) Exit the industry.

When sportspeople record the speed of a pitch in baseball, they refers to its velocity. It is measured in miles per hour. When economists record the speed of a dollar, they refer to the velocity of money. It measures the

a. number of times per year each dollar is used to transact an exchange b. rapidity of the dollar price of a good or the rate of inflation c. number of times the price level increases during a year d. time it takes a bank to convert a check into dollars e. number of times per year each good, valued in terms of dollars, is purchased during the year