If the demand for a good is elastic, then total revenue
a. increases as price increases.
b. remains constant as quantity demanded increases.
c. increases as price decreases.
d. decreases as quantity demanded increases.
e. decreases as price decreases.
C
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Explain the concept of purchasing power parity
What will be an ideal response?
To get the U.S. Senate to pass a farm bill, a U.S. Senator from a farm state asks for the support of a U.S. Senator from an urban state. The urban state Senator agrees to support the bill, if in return the farm state Senator supports a bill for a mass transit project. This situation is an example of:
A. The paradox of voting B. Rent-seeking behavior C. Political logrolling D. The median voter model
Refer to Figure 2-2. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
The equivalent variation is always less than the consumer's income
Indicate whether the statement is true or false