As people have more time to adjust to changes in a good's price,
A) the demand curve will become less elastic.
B) the supply curve will become less elastic.
C) both the demand and supply curves will become less elastic.
D) both the demand and supply curves will become more elastic.
D
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When a central bank intervenes in the foreign exchange market to purchase a foreign currency, the transaction:
a. Increases the nation's monetary base and increases the reserves account in the balance of payments. b. Decreases the nation's monetary base and increases the reserves account in the balance of payments. c. Decreases the nation's monetary base and decreases the reserves account in the balance of payments. d. Changes neither the monetary base nor the reserves account. e. Increases the nation's monetary base and decreases the reserves account in the balance of payments.
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. The cafe's economic profit is
A. break even. B. positive. C. negative. D. zero.