A public transit company finds that when it reduces the price of a bus ticket, total revenues remain the same. One can conclude from this that:
A. the demand curve is horizontal, reflecting infinite price elasticity.
B. if the price is lowered further total revenue will increase.
C. the demand curve for bus tickets must have shifted to the right.
D. the firm is operating in a range of the demand curve that is unit elastic.
Answer: D
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A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
A merit goods is
a. a public good provided by government that people deem necessary and important b. a good that the market does not produce in quantities and at prices that governmentbelieves is warranted c. the highest quality of a public good that government produces d. a public good produced in the most efficient way e. a civilian public good as opposed to a national security good produced bygovernment
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
A bilateral exchange rate is an exchange rate:
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