One way sellers can credibly signal that they have a high-quality product is to:
A. sell very little of their product in order to create scarcity.
B. spend a lot of money on advertising.
C. simply tell buyers more about their product.
D. lower their marginal cost of production.
Answer: B
Economics
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If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly inelastic. d. perfectly elastic.
Economics
Which of the following is a basic question answered by an economic system?
a. for whom goods and services are produced. b. how goods and services are produced. c. what goods and services are produced. d. all of these.
Economics