What effect do import restrictions have on prices?
a. They cause prices to rise.
b. They cause prices to drop.
c. They often cause prices to rise steeply and then drop.
d. They usually do not have any lasting effect on price.
Answer: a. They cause prices to rise.
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Briefly describe the three key points managers must consider when using expert opinion, consumer surveys, test marketing, and price experiments in analyzing consumer behavior
What will be an ideal response?
Figure 15-2
According to the modern expectational Phillips curve illustrated in , unemployment will temporarily rise above the natural rate of unemployment when
a.
inflation turns out to be lower than what people expected.
b.
inflation turns out to be higher than what people expected.
c.
inflation turns out to be equal to what people expected.
d.
all of the above are true.