The demand for oil is inelastic. So, does an increase in the price of oil mean an increase in total revenue or a decrease in total revenue for oil producers?
What will be an ideal response?
Because the demand is inelastic, an increase in price increases the total revenue of the oil producers.
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A perfectly elastic demand curve for a firm
A. is represented by a vertical line. B. means that with every unit price increase there will be a unit decrease in demand. C. is formulated by P× Q = a constant, for all prices and quantities. D. indicates that any increase in price will eliminate all purchases of its product.
Suppose that along the economy-wide rate-of-return line, the current interest rate of 8 percent causes a planned investment of $300 billion
Should the interest rate fall to 7 percent, the $300 billionth dollar of investment spending now generates a ________ rate of profit, which puts ________ pressure on investment. A) positive, downward B) positive, upward C) negative, downward D) negative, upward
Refer to the table below. What is the present value of the entire stream of payments?
The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
A) $9,800.14
B) $9,500.23
C) $9,886.70
D) $10,500.56
Which type of unemployment leads to a natural rate of unemployment above zero?
A. Frictional unemployment B. Cyclical unemployment C. The natural rate of unemployment is always zero. D. Unemployment of government workers