Which of the following accurately describes the concern for marketers with respect to lowering prices for an inelastic product? a) the percentage increase in the total revenue of the company due to the lowered price may result in a higher level of competition in the market. b) the percentage increase in the quantity demanded for the product is much greater than the percentage decrease in the price of the product. c) although this may result in an increase in the total revenue for the company, lowering price of an inelastic product can be illegal. d) although this may result in an increase in the number of units sold, the total revenue of the company may eventually fall. e) although this may result in an increase in the demand for the product, the company may not be able to keep up supply for the product

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

What is the most direct result of free trade supplying productive resources to areas where they're most needed? a. enhanced efficiency b. lower interest rates c. increasing specialization d. greater competition 2b2t

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?