Information on the price elasticity of demand is particularly important to managerial decision making because:
A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it.
B) depending on the elasticity coefficient, decision makers will immediately know if a price change will cause profits to increase or decrease.
C) it allows one to predict how total revenue will respond, i.e., increase or decrease, to a change in price.
D) as the price elasticity coefficient approaches one, profits will increase.
C
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In 2013 banks kept reserves equal to about ________ of their assets
A) 37 percent B) 50 percent C) 75 percent D) 25 percent E) 18 percent
If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then: a. excess demand exists
b. excess supply exists. c. price will rise. d. price will fall. e. the market is in equilibrium.