If the demand for widgets is inelastic, revenues will ________ if the price of widgets increases.
A. remain the same
B. increase
C. fall
D. one cannot tell what will happen to revenues without specific elasticity numbers
Answer: B
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
width="553" />If Candidate Y is running against Candidate Z: A. Both candidates will have an incentive to move to the left. B. Both candidates will have an incentive to move toward each other's position. C. Candidate Y will have an incentive to move to the left, and Candidate Z will have an incentive to move to the right. D. Neither candidate has any incentive to move.
How is the short run response to a change in demand or cost condition different from the long run response in a perfectly competitive market?
Generally, microeconomics
A) has little to say about the entrepreneur B) says a good bit about the entrepreneur. C) equates the entrepreneur and the manager. D) equates management and shareholders.
Identify some of the salient features of voting as a method of determining the majority preference