Increased liquidity in recent decades has reduced interest rates on which of the following assets (holding constant all other things that affect interest rates)?

Assume that you own a small boutique hotel. In an attempt to raise revenue, you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms?

A) Demand is inelastic. B) Boutique hotel rooms are inferior goods. C) The demand curve for your hotel rooms is vertical. D) Demand is elastic.

Productive efficiency is achieved when firms produce goods and services

A) at the highest profit margin. B) at the lowest cost. C) most desired by society. D) of the highest quality.