If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run.
a. Increase; increase
b. Increase; decrease.
c. Decrease; increase.
d. Decrease; decrease.
a
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Expenditures for attending college can be viewed as an investment in human capital.
Answer the following statement true (T) or false (F)
If the price of automobiles were to decrease substantially, the demand curve for automobiles would most likely
A) shift rightward. B) shift leftward. C) remain unchanged. D) become steeper.
Speculation in exchange markets is often thought of as conducive to wild fluctuations in exchange rates. In practice it appears that speculators
a. have destabilized several currencies that were at sustainable equilibrium levels. b. have no effect in fixed rate systems. c. in fact tend to stabilize exchange rates rather than destabilize them. d. All of the above are correct.
You observe that grocery shoppers choose the shortest line at the checkout. This is an example of _____
a. rational self-interest b. selfishness c. greed d. blind materialism e. altruism