Use the Application about the price of vanity license plates in Virginia to answer the following question(s).Recall the Application. Because the elasticity of demand for vanity plates is 0.26, then an increase in the price of vanity plates will:
A. decrease total revenues.
B. cause no change in the total revenues.
C. increase total revenues.
D. There is insufficient information to draw a conclusion.
Answer: C
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A graph showing the values of an economic variable for different groups in a population at a point in time is called a
A) cross-section graph. B) time-series graph. C) scatter diagram. D) Venn diagram. E) None of the above answers is correct.
A scatter diagram with the price of vacations to Mexico on the vertical axis and the price of vacations to California on the horizontal axis shows a positive relationshi
A) negative relationship, also called a direct relationshi
In the long run, total fixed cost equals zero
Indicate whether the statement is true or false
An antitrust agency is identifying the product market for Good X and determines that Good X and Good Y have a cross-price elasticity of 0.04. As a result of the cross-price elasticity, the antitrust agency is likely to ________ Good Y from Good X's product market as the products ________ compete as close substitutes.
A) include; do B) exclude; do C) include; do not D) exclude; do not