When demand is elastic, an increase in price causes the seller's total revenue to:
A. decrease.
B. increase.
C. fall to zero.
D. remain the same.
Answer: A. decrease.
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What caused the major economic conflict between the North and the South immediately before the outbreak of the Civil War?
A. Agricultural development. B. Industrialization in the North. C. Trade barriers with England. D. All of the choices are true.
The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A) the horizontal line at the price level. B) the LRAS curve. C) the distance between the LRAS curve and the AD curve. D) the AD curve.
If potential GDP increases,
A) aggregate supply increases. B) the money wage rate must have fallen. C) the quantity of aggregate supply decreases. D) the price level rises. E) aggregate supply does not change.
Competition means that:
A. sellers can manipulate market price by causing product scarcities. B. there are independently acting buyers and sellers in each market. C. a product can be purchased at a number of different prices. D. there is more than one seller in a market.