What does the area labeled A show?
a. increase in revenue due to change in quantity
b. decrease in revenue due to change in quantity
c. increase in revenue due to change in price
d. decrease in revenue due to change in price
d. decrease in revenue due to change in price
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If a consumer's income increases and if all goods are normal goods, explain how the quantity bought of each good changes
What will be an ideal response?
As interest rates rise, the expected absolute return of money ________, money's expected return relative to bonds ________
A) does not change; decrease B) rises; decrease C) does not change; increase D) falls; decrease
A profit-maximizing monopoly will choose advertising expenditures so the ratio of advertising expenditures to total revenue is equal to the ratio of advertising elasticity to price elasticity (in absolute value)
Indicate whether the statement is true or false
Hyperinflation:
a. Destroys the standard of deferred value and store of value functions of money but not the others. b. Destroys the unit of account and medium of exchange functions of money but not the others. c. Destroys the unit of account and store of value functions of money but not the others. d. Tends to destroy none of the functions of money because a society always needs money. e. Tends to destroy all the functions of money.