Negative supply shocks can have a tendency to ________ costs of production and ________ the inflation rate

If the demand for a product is said to be relatively inelastic, the "absolute" value of the elasticity coefficient will be

A) less than one. B) greater than one. C) equal to one. D) zero.

When a firm sets a price relatively low in order to increase the market share, it is referred as

A) price skimming. B) limit pricing. C) penetration pricing. D) predatory pricing.