If the own-price elasticity of demand is -1.25, in order for the manufacturer of Ragu to increase total revenue, at least in the short run, it would be advisable to
A) Can't tell; insufficient information B) Raise the price of Ragu.
C) Lower the price of Ragu. D) Do nothing.
Answer: C
Economics
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The consumption of water by local residents that may include pesticide runoff from local farmers' fields is an example of
a. market equilibrium. b. market power. c. externalities. d. laissez-faire.
Economics
What do economists mean by “rent seeking” among producers?
a. leasing space to foreign producers who want to house imported goods b. efforts to gain profits from government tariffs and import quotas c. investments in foreign companies holding licenses to import goods d. lobbying to keep foreign competition out of the domestic market
Economics