Answer:
c. loses some, but not all, of its customers as your answer loses some, but not all, of its customers
Explanation:
In a monopolistically competitive product is a product that has competition in the market, but that are not quite the same product, meaning they can´t be exactly replaced by a cheaper or different brand, when a company like that rises its prices, it eventually ends up loosing some clients, but not all, because of the loyal clients and those that can´t or won´t change brands, a good example of a monopolistically competitive firm, would be Apple, which has a loyal base of costumers that eventhough prices of apple products have been rising are still loyal, they are loosing some customers to other brands but not all of them.
Answer:
D. the combinations of output and the interest rate where the goods market is in equilibrium.
Explanation:
The IS curve means investment-savings curve.
The IS curve is the combinations of output and the interest rate where the goods market is in equilibrium.
It is a curve which shows the different combinations of income (Y) and the real interest rate (r) such that the market for goods and services is in equilibrium.
This means that, every point on the IS curve is an income/real interest rate pair (Y,r) such that the demand for goods is equal to the supply of goods(Qs=Qd) or equivalently, the desired national saving is equal to desired investment.
The real exchange rate is 1 dollar = 2 Argentine pesos
The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:
- 1 Dollar is equivalent to 4 Argentine pesos
However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:
- 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.
In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.
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