What is the most likely effect of the development of cell phones on the pay phone industry?
a. the own price elasticity of pay phones increases
b. the own price elasticity of pay phones decreases
c. the price elasticity of home phones does not change
d. none of the above
a
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Which of the following is true of long-run equilibrium in a perfectly competitive market? a. At the profit-maximizing price, average total cost is at its lowest
b. At the profit-maximizing price, marginal cost is at its lowest. c. At the profit-maximizing price, average total cost is rising. d. At the profit-maximizing price, average total cost exceeds marginal cost.
Refer to the information. The $40 billion deposit of currency into checking accounts will create excess reserves of:
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. A. $20 billion. B. $32 billion. C. $40 billion. D. $0.