If a decrease in price decreases a monopolist's total revenue, then
A) demand is elastic.
B) demand is inelastic.
C) demand is unit elastic.
D) the law of demand is violated.
B
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Cross elasticity of demand for
a. substitutes will normally be positive. b. complements will normally be positive. c. substitutes will normally be negative. d. complements will normally be infinite.
The price elasticity of demand measure is generally stated as an absolute value
a. True b. False Indicate whether the statement is true or false
If quantity demanded for rice decreases by 4% when the price of rice increases by 8%, we know that the price elasticity of rice is equal to:
a. -2.5 b. -0.5 c. -2.0 d. -0.4
In a classical model
A. equilibrium real GDP is neither determined by aggregate supply nor by aggregate demand. B. equilibrium real GDP is determined by both aggregate supply and aggregate demand. C. equilibrium real GDP is determined by the government. D. equilibrium real GDP is supply determined.