A bumper crop would be bad news for farmers if their crop has an inelastic demand because their total revenue would:
A. rise along with price.
B. rise as price falls.
C. fall as price rises.
D. fall along with price.
Answer: D
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If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change B) rises; rises C) rises; falls D) falls; rises E) falls; falls
Growth of output per person at a constant rate is referred to as ________
A) a balanced growth path B) a steady state C) a ratio scale D) an amplification effect
One problem associated with a monopoly firm is that it
A) produces too little output but also charges a low price. B) produces too much output and charges too low a price. C) restricts output and charges a relatively higher price than a purely competitive firm. D) is just as good as a purely competitive firm in terms of output and price.
The production possibilities frontier can be used to illustrate all of the following concepts, except one. Which is the exception?
a. productive inefficiency b. opportunity cost c. the law of demand d. scarcity e. the law of increasing opportunity costs