If the demand curve facing a firm had a price elasticity of demand equal to zero and the firm raised its price, its total revenue would:
A. decrease slightly.
B. fall to zero.
C. not change.
D. increase.
Answer: D
You might also like to view...
When a central bank targets inflation, its inflation targets are usually specified as
A) a specific inflation rate target, for example, 1 percent. B) the short-term interest rate minus 2 percent. C) a point on the short-run Phillips curve. D) a range for the inflation rate. E) deviations from the inflation rate.
The Phillips curve shows a negative relationship between the:
a. consumption rate and the unemployment rate. b. savings rate and the inflation rate. c. interest rate and the savings rate. d. inflation rate and the unemployment
A binding price floor creates
a. deadweight loss. b. consumer surplus. c. producer surplus. d. deadweight gain.
"The plan to create private accounts in Social Security will reduce benefits for some workers," is an example of a ________ statement, while "Social Security will be better if the private accounts are allowed" is an example of a ________ statement.
A. monetary policy; fiscal policy B. positive; normative C. normative; positive D. structural policy; fiscal policy