Suppose you observe that as a TV manufacturer increases its price its total revenue decreases. This could be due to:
A. demand being price inelastic.
B. demand being price elastic.
C. demand being unit elastic.
D. demand being perfectly price inelastic.
Answer: B
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Which of the following is an example of a supply shock?
A) a surprise increase of the money supply B) an increase in the price level C) a sharp increase in the price of oil D) an increase in government spending
The economy is considered to be at full employment when the rate of cyclical unemployment is zero
Indicate whether the statement is true or false
The relationship between money and gross domestic product is shown by the equation of exchange
a. True b. False Indicate whether the statement is true or false
You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,
a. your demand for peanut butter will increase, but not until the end of the year. b. your demand for peanut butter increases today. c. your demand for peanut butter decreases as you look for a substitute good. d. you will wait for the price of jelly to change before altering your demand for peanut butter.