If the elasticity of demand for a service is 0.4 and price is raised,
A. total revenue will fall.
B. total revenue will rise.
C. total revenue will stay the same.
D. there is no way to determine whether total revenue will rise, fall, or remain the same.
B. total revenue will rise.
You might also like to view...
Remittances to foreign countries from legal and illegal residents of the U.S. are examples of ________
A) factor payments B) exports C) imports D) transfer payments There are two countries - Earthland and Plutoland - who trade only with each other. Residents in Earthland purchased buildings worth $10 billion in Plutoland during a certain year. None of the other transactions between the two countries during that year involved purchase or sale of assets.
Which of the following is true?
a. Patents reduce a firm's incentive to develop new products. b. Patents are given for new works of art or literature. c. Patents give a permanent exclusive right to produce a new good. d. Patents give a temporary exclusive right to produce a new good. e. Patents guarantee economic profits.
When describing the opportunity cost of two producers, economists use the term
a. natural advantage. b. trading advantage. c. comparative advantage. d. absolute advantage.
Suppose labor productivity in France is such that one hour of labor is required to produce one gallon of wine while two hours of labor are required to produce one pound of cheese. Assuming the availability of one million labor hours, draw a constant-cost production-possibility curve for France with the quantity of cheese measured along the vertical axis and the quantity of wine on the horizontal axis. If the free-trade price of wine is two pounds of cheese per gallon, show where, with free trade, France will produce on its production-possibilities curve. Then, draw and use a trade line to illustrate how France can gain from free trade.
What will be an ideal response?