If the elasticity for computers at the current price is at 6.4, what would happen to total revenues if a computer manufacturer doubled its price?
(A) They would go up slightly.
(B) They would double.
(C) They would remain the same.
(D) They would go down drastically.
Ans: (D) They would go down drastically.
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When households increase their personal savings ________
A) investment decreases B) they are better able to cope with severe economic downturns C) interest rates are likely to rise, as well D) all of the above E) none of the above
A perfectly competitive producer's demand curve is:
a. a horizontal line. b. also the market-demand curve. c. downward sloping but more elastic than the market-demand curve. d. a vertical line. e. upward sloping.
In the long run, zero economic profit exists in monopolistic competition and perfect competition
a. True b. False Indicate whether the statement is true or false
If the Midwest experiences a severe drought that damages the corn crops, we should expect the
a. supply of corn will decrease and the price of corn will rise. b. demand curve for corn will decrease and the price of corn will fall. c. demand curve for corn will increase and the price of corn will rise. d. supply of corn will increase and the price of corn will fall.