The price elasticity of demand for new stereos is –2 . Suppose a stereo store wishes to increase its sales by 15 percent. What should the firm do?
What will be an ideal response?
[15]/ [percentage change in price] = -2 . Therefore, the store should lower the price by 7.5 percent.
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By early 2010, which of the following situations existed in the Eurozone debtor nations?
A) They had resolved their bank failures and restored fiscal responsibility. B) They had sought and received help from the United States and the IMF to finance their financial sector bailouts. C) They were in worse shape as debt grew to alarming levels, external investors were worried, and their bond ratings plummeted. D) By that time, the debtor nations had repaid more than 90% of outstanding external debt
This year a country loaned more to the rest of the world than it borrowed from the rest of the world. In addition, the country has invested more in the rest of the world than other countries have invested in it
The country is currently a ________ and also a ________. A) net lender; creditor nation B) net borrower; creditor nation C) net borrower; debtor nation D) debtor nation; net lender