If the absolute price elasticity of demand for concert tickets is 0.75, an increase in ticket prices will
A) increase total revenue.
B) decrease total revenue.
C) not change the elasticity of demand.
D) not change total revenue.
A
You might also like to view...
Based on the following information, calculate public saving, net foreign investment, and national income. Assume that the capital account is zero and net transfers are zero
private saving = $145 billion exports = $285 billion imports = $240 billion consumption = $600 billion private investment = $125 billion government purchases = $75 billion
Of all barriers to entry, the most important are those that are due to
A) economies of scale. B) government-imposed barriers. C) the Herfindahl-Hirschman Index. D) ownership of a key input.
Consider two industries, industry Q and industry Z. In industry Q there are 10 companies, each with a market share of 10% of total sales. In industry Z, there are eight companies
One company has a 65% market share and each of the other seven firms has a market share of 5%. a. Calculate the four-firm concentration ratio for each industry. b. Calculate the Herfindahl-Hirschman Index (HHI) for each industry. c. What do the values of the two concentration measures imply about the degree of market power in the two industries?
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.