Moving downward along a linear (straight-line) downward-sloping demand curve, the
A) price elasticity of demand does not change.
B) quantity demanded decreases.
C) demand becomes more elastic.
D) demand becomes less elastic.
E) total revenue never changes.
D
You might also like to view...
Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question.
At the long-run equilibrium level of output, this firm's profit
A. is $400. B. is zero. C. is $200. D. cannot be determined from the information provided.
Use the following table showing maximum-output alternatives for Brazil and Poland to answer the next question.CountryWineMachinesBrazil3010Poland1010If the two nations open up trade with each other, then
A. Brazil will not gain from specializing and trading, but Poland will gain. B. Brazil will specialize in producing machines and import wine. C. Poland will specialize in producing machines and import wine. D. Poland will export wine.
Which of the following is a difference between an English auction and a Dutch auction?
A) Bids are placed publicly in an English auction while bids are placed privately in a Dutch auction. B) The bidder who values the good the most wins in an English auction while the bidder who values the good the least wins in a Dutch auction. C) An English auction is an ascending price auction while a Dutch auction is a descending price auction. D) An English auction is a descending price auction while a Dutch auction is an ascending price auction.
The value in one year of $25 invested today at an annual interest rate of 5 percent will be
A) $25.00. B) $26.25. C) $27.50. D) $30.00.