The anticipated retail price of a stationary bike is $195 and the initial markup is 56 percent. Calculate the merchandise cost.

Price elasticity of demand tends to be larger in the long run than in the short run. Which of the following is a reason that this statement is true? a. Over time, peoples incomes rise. b. If price rises, over time, producers will be able to offer more substitutes. c. Over time, the good will become a smaller and smaller share of peoples budgets. d. People see fewer and fewer substitutes for the good in the long run.

If bus travel is an inferior good, its income elasticity of demand is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.

After running a promotional campaign, the owners of a local hardware store decided to decrease the prices for the advertised products sold in their store. One can infer that a. the promotional expenditures made the demand for the advertised products more elastic. b. the promotional expenditures made the demand for the advertised products less elastic. c. the promotional expenditures had no effect on the demand elasticity. d. the owners got it wrong. To cover the promotional expenses, they should have raised the prices.

If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.

Along a segment of the demand curve where the price elasticity of demand is less than 1, a decrease in price a. is impossible. b. will increase total revenue. c. will decrease total revenue. d. decreases quantity demanded.