Elsa and Moshe have different ideas about how their country should invest its tax revenues. Elsa feels that some of it should be used to fund an ambitious space science program. Moshe feels the money would be better spent on improvements to roads, bridges, and airports. It is likely that Elsa is more interested in ______ than Moshe.

Which of the following would lead to an increase in the demand for computer software?

a. A decrease in the price of computer software. b. A decrease in the price of personal computers. c. An decrease in the cost of producing computer software. d. An decrease in personal income.

In the cigarette industry either R. J. Reynolds or Phillip Morris, for a time, raised prices twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this

a. predatory pricing. b. a price war. c. price leadership. d. sales maximization.