Compared with generic products, a brand name:
a. reduces the price elasticity of demand and gives a firm more market power.
b. increases the price elasticity of demand and gives a firm more market power.
c. increases the price elasticity of demand and gives a firm less market power.
d. reduces the price elasticity of demand and gives a firm less market power.
e. has no effect on price elasticity of demand or market power.
a
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If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to
A) see whether it generates accurate predictions about the choices of business people. B) ask business people whether it is true or not. C) find out whether U.S. businesses are more profitable than European businesses. D) take a survey of people and see if they agree with this assumption.
Which of the following would tend to decrease velocity?
a. an increase in interest rates b. more frequent paychecks c. expected decreases in inflation d. more efficient payment systems