After running a promotional campaign, the owners of a local shoe store decided to decrease the prices for the shoes sold in their store. One can imply that
a. The promotional expenditures made the demand for their shoes more elastic
b. The promotional expenditures made the demand for their shoes more inelastic
c. The promotional expenditures has no effect on the shoe demand elasticity
d. The owners got it wrong. To cover the promotional expenses, they should have raised the prices.
a
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Which of the following macroeconomic variables is acyclical?
A) Real interest rates B) Unemployment C) Money supply D) Consumption
A value of the absolute price elasticity of demand equal to 0.25 indicates that
A) a 5% decrease in price leads to a 2% increase in quantity demanded. B) a 2% decrease in price leads to a 25% increase in quantity demanded. C) a 1% decrease in price leads to a 2.5% increase in quantity demanded. D) a 0.25% decrease in price leads to a 1% increase in quantity.