Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?
A) ownership of stocks from a specific sector (for example, the technology sector) over a lengthy period of time
B) ownership of a single stock over a lengthy period of time
C) ownership of a single stock for a short period of time
D) ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time
D) ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time
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A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?
A) 1/2 B) -2 C) -1/2 D) 2
Suppose that both the supply of iPads and the demand for iPads decrease. One can predict that the:
A. equilibrium price and quantity will rise. B. equilibrium price and quantity will fall. C. equilibrium price will rise, but the change in equilibrium quantity is uncertain. D. equilibrium quantity will fall, but the change in equilibrium price is uncertain.