If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
A) rise.
B) fall.
C) stay the same.
D) either rise or fall, but it is impossible to determine which.
B
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Assuming all else equal, if households are optimistic about their future income, it is likely to cause a(n):
A) downward movement along their credit demand curve. B) upward movement along their credit demand curve. C) leftward shift of their credit demand curve. D) rightward shift of their credit demand curve.
A sales tax is imposed on the sellers of gasoline. This tax shifts
A) the supply of gasoline curve leftward. B) the supply of gasoline curve rightward. C) the demand for gasoline curve leftward. D) both the supply curve of gasoline and demand curve for gasoline leftward.
Suppose the government grants child care subsidies to mothers entering the labor force. What is likely to happen to the equilibrium wage and quantity of labor?
A) The equilibrium wage rises and the equilibrium quantity of labor falls. B) The equilibrium wage falls and the equilibrium quantity of labor rises. C) The equilibrium wage and the equilibrium quantity of labor fall. D) The equilibrium wage and the equilibrium quantity of labor rise.
Discuss the role of more "transparency" in reducing the risk of financial crisis
What will be an ideal response?