Suppose That the Owner of a Local Ice Cream Store

question 13

Multiple Choice

Suppose that the owner of a local ice cream store, knowing that demand for ice cream is higher when the weather is warmer, always charges a price in cents for a scoop of ice cream that is equal to two times the current outdoor temperature, measured in Fahrenheit (so that if it is 90 degrees outside, the ice cream is $1.80 per scoop) . This type of behavior is ________.

• A)exactly the type of behavior that Keynes believed most firms exhibit
• B)known as meeting demand
• C)inconsistent with the key assumption upon which the basic Keynesian model is built
• D)free from menu costs

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Definitions:

Cytokinesis

The division of the cytoplasm of a cell at the end of mitosis or meiosis, bringing about the separation into two daughter cells.

Telophase

The final stage of cell division (mitosis and meiosis), where chromosomes decondense, nuclear membranes reform, and cytokinesis typically begins.

Interphase

The phase of the cell cycle in which the cell spends the majority of its time and engages in DNA replication, growth, and preparation for cell division.

Contains DNA

Refers to cells or structures having deoxyribonucleic acid, the molecule that carries the genetic instructions used in growth, development, functioning, and reproduction.