If the demand for a product is elastic, then a rise in price will:
a. cause total spending on the good to increase.
b. cause total spending on the good to decrease.
c. keep total spending the same, but reduce the quantity demanded.
d. keep total spending the same, but increase the quantity demanded.
b
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Which of the following is most important in explaining exchange rate fluctuations in the short run?
A) relative price levels across countries B) relative rates of productivity growth across countries C) preferences for domestic and foreign goods D) interest rates
The average tariff rate dutiable imports in the United States is approximately
A) less than 10 % of the value of imports. B) 15% of the value of imports. C) 20 % of the value of imports. D) 25% of the value of imports. E) more than 30% of the value of imports.
A debit card
A. is considered part of M1. B. is just like credit card in that you pay for it with a check at a later time. C. purchase takes money out of your checking account. D. is considered part of M2.
If the demand for steak (a normal good) shifts to the left, the most likely reason is that:
A. cattle production has declined. B. the price of steak has risen. C. the price of cattle feed has gone up. D. consumer incomes have fallen.