If a business decreased the price of its product from $10 to $9 when demand was price inelastic, then total revenues would:
A. be perfectly inelastic.
B. remain unchanged.
C. decrease.
D. increase.
Answer: C
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Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars). In the Nash equilibrium
A) Dell keeps its prices high and Gateway lowers its prices. B) both Dell and Gateway lower prices. C) Gateway keeps its prices high and Dell lowers its prices. D) both Dell and Gateway keep prices high.
Refer to Figure 26-1. In the figure, the money demand curve would move from Money demand1 to Money demand2 if
A) the interest rate increased. B) the price level decreased. C) real GDP increased. D) the Federal Reserve sold Treasury securities.
The value of an hour of leisure can best be estimated as
A. Total recreational expenditures divided by hours of leisure. B. Zero since no income is earned. C. The value of any productive work, although such a value is lower than what could have been earned. D. The hourly wage that could have been earned.
Answer the following statement true (T) or false (F)
1) Property rights over fish in the open ocean exist once the fish are caught. 2) Fisheries have been overexploited relative to forests primarily because people care more about trees than fish. 3) TAC policies help reduce overfishing and reduce costs for fishers. 4) Total allowable catch policies promote economic efficiency better than individual transferable quotas.