Refer to Scenario 11.1. Suppose all five ranchers know that Mariana has $3 million to spend on their land and they also know that their land that Mariana needs is worth a total of $2 million
Each rancher believes that one or more of the other ranchers will settle for less than the maximum value of their land and therefore each decides to ask Mariana to pay $750,000 for their parcel of land. In this situation, the economic pie will A) grow by $3.75 million.
B) grow by $3 million.
C) not grow.
D) shrink by $1 million.
C
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When a firm raises the price of its product, what happens to its total revenue?
A) If demand is elastic, total revenue decreases. B) If demand is unit elastic, total revenue increases. C) If demand is inelastic, total revenue decreases. D) If demand is elastic, total revenue increases. E) If demand is unit elastic, total revenue decreases.
Use the following reserve-requirements table to answer the next question.Type of DepositReserve RequirementCheckable deposits $7.8 - $48.3 million3%Over $48.3 million10Noncheckable personal savings and time deposits0If a bank has checkable deposits of $45 million and reserves of $2 million, then its excess reserves are
A. $1.65 million. B. $1.35 million. C. $0.35 million. D. $0.65 million.