Refer to the data. Suppose quantity supplied declined by 23 units at each price, changing the equilibrium price in a direction and amount for you to determine. Over that price range, demand is:
A. elastic.
B. inelastic.
C. perfectly elastic.
D. perfectly inelastic.
B. inelastic.
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Entry barriers exist in a perfectly competitive industry
a. True b. False Indicate whether the statement is true or false
Economics is primarily the study of
a. how to make money in the stock market. b. how to operate a business successfully. c. the allocation of scarce resources in an effort to satisfy wants that are virtually unlimited. d. the methods business firms use to reduce their costs of production.
Which of the following is a positive side effect of business start-ups and the business failures that often follow?
a. The process makes it possible to try out numerous new ideas, and some of them will substantially improve our lives. b. The process increases total employment, and leads to a lower rate of unemployment. c. The process generates additional revenue for the government, which will then be used to produce goods and services that people value. d. This is a trick question. There are no positive side effects of business failures.
Suppose the point (Q = 3,400, P = $20) is the midpoint on a certain downward-sloping, linear demand curve. Then
a. a decrease in price from $18 to $16 will increase total revenue. b. a decrease in price from $24 to $22 will decrease total revenue. c. a decrease in the price from $21 to $19 will decrease total revenue. d. the maximum value of total revenue is $68,000.