When Peter earned $65,000 he purchased 10 novels a year. His income has just increased to $68,000 and he plans to purchase 15 novels this year. Peter's income elasticity of demand for novels equals

Given the quantity theory of money 1/V represents

A) the velocity of money. B) the number of times the average $ changes hands. C) the proportion of nominal income held as a medium of exchange. D) PY.

The Stackelberg model is more appropriate than the Cournot model in situations where

A) there are more than two firms. B) all firms enter the market simultaneously. C) one firm makes its output decision before the other. D) firms will be likely to collude.