If a firm knows that the demand for its product is inelastic, it could generate more revenue by:
A. lowering the price, because the resulting change in sales would be relatively large.
B. raising the price, because the resulting change in sales would be relatively large.
C. lowering the price, because the resulting change in sales would be relatively small.
D. raising the price, because the resulting change in sales would be relatively small.
D. raising the price, because the resulting change in sales would be relatively small.
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Under the Patient Protection and Affordable Care Act (ACA), every company with more than 200 employees must offer health insurance to its employees and must automatically enroll them in the plan
Indicate whether the statement is true or false
Producer surplus is equal to the area
A) under the demand curve and above the supply curve. B) above the supply curve and below the price line. C) under the demand curve. D) under the supply curve. E) under the demand curve and above the price line.
As the wage rate increases, the substitution effect causes workers to supply more time to market work and the income effect causes them to supply less time to market work
a. True b. False
A tax on the buyers of cameras encourages
a. sellers to supply a smaller quantity at every price. b. buyers to demand a smaller quantity at every price. c. sellers to supply a larger quantity at every price. d. Both a) and b) are correct.