What is the relationship between price elasticity of demand and total revenue for the firm?
What will be an ideal response?
If demand is elastic then price and total revenue are inversely related, while if demand is inelastic, price and total revenue are directly related, and if demand is unitary elastic, then price and total revenue are unrelated.
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Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie
Therefore, the opportunity cost of attending class is the tennis and the movie she had to give u
Given that the firm only chooses to sell the high-end professional series, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Inflation that causes an increase in the prices of goods and services will, other things being equal, tend to decrease nominal GDP
a. True b. False Indicate whether the statement is true or false
With the help of a suitable diagram, explain how in a two-country, two-commodity model one of the countries may fail to specialize completely despite enjoying comparative advantage in one of the goods.
What will be an ideal response?