The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair. It sells 8 pairs of jeans per day at a price of $90 per pair. The marginal revenue of the eighth pair of jeans is

Points where the aggregate expenditure (AE) curve lie above the 45° line are points where aggregate planned expenditure is

A) greater than real GDP. B) equal to real GDP. C) less than real GDP. D) the inverse of real GDP. E) not related to real GDP.

The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. For firm B

A) setting a high price is the dominant strategy. B) setting a low price is the dominant strategy. C) there is no dominant strategy. D) doing the opposite of firm A is always the best strategy.