When a firm raises the price of its product, what happens to its total revenue?
A) If demand is elastic, total revenue decreases.
B) If demand is unit elastic, total revenue increases.
C) If demand is inelastic, total revenue decreases.
D) If demand is elastic, total revenue increases.
E) If demand is unit elastic, total revenue decreases.
A
You might also like to view...
Which of the following would not be included in the calculation of this year's GDP?
A) a headlight bulb purchased at Joe's Auto Supply by Olivia to replace a burnt out bulb in her car B) a headlight bulb purchased by Ford Motor Co. from a supplier C) a headlight bulb produced but not sold this year and thus ending up as inventory D) none of the above, i.e., all would be included
A U.S. bank wants to buy euros in order to buy German bonds. In the open-economy macroeconomic model, this transaction would be part of
a. the supply of currency in the foreign exchange market, and part of the supply of loanable funds. b. the demand for currency in the foreign exchange market, and part of the supply of loanable funds. c. the supply of currency in the foreign exchange market, and part of the demand for loanable funds. d. the demand for currency in the foreign exchange market, and part of the demand for loanable funds.
A congress member concerned about ensuring vertical equity in taxation would be most likely to argue for obtaining government revenue through a
A. progressive tax on personal income. B. regressive tax on corporate income. C. sales tax. D. head tax.
According to Keynes, what is the most important determinant of households' spending on goods and services?
A. the price level B. the interest rate C. autonomous consumption D. disposable income