Suppose you are considering buying stock in the stock market, and your objective is to maximize your net worth. Furthermore, your study of the market reveals that the economy will be slowing down over the next several months
Under these conditions, it would be best to purchase stock in companies that produce
A) normal goods. B) luxury goods.
C) price elastic goods. D) inferior goods.
D
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Refer to Figure 9.1. If the market is in equilibrium, the producer surplus earned by the seller of the 1st unit is ________
A) $5.00 B) $10.00 C) $15.00 D) $20.00 E) $40.00
As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect. B) proves that the fax machine is an inferior good. C) proves that the fax machine is a luxury good. D) is an example of a positive network externality. E) is an example of a negative network externality.