Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
a. revenues will rise 5 percent
b. quantity demanded will rise 5 percent
c. total revenues will not change
d. revenues will fall
e. revenues will fall 5 percent
C
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To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:
a. downward-sloping. b. upward-sloping. c. horizontal. d. vertical.
When demand is elastic, an increase in price leads to:
A. a decrease in total expenditures. B. an undetermined change in expenditures. C. an increase in total expenditures. D. no change in total expenditures.
The study of health care provision in Delhi, India by Hammer and Das found:
A. doctors in public clinics were often more creative in diagnoses and care than doctors in private facilities. B. the implementation of national healthcare provisions had strong associations with quality of care. C. unless doctors were intrinsically motivated, no incentive exists for them to provide high quality care. D. doctors often worked at or beyond their knowledge frontier.
The relationship between planned real investment spending and the interest rate is
A. inverse. B. positive. C. constant. D. direct.