Suppose 1000 units of a good are sold at $10 a unit. If its price increases to $20 and total revenue increases to $20,000 and increases by $1000 for every dollar increase in price after that, we know that
A) demand is perfectly elastic.
B) the demand curve is vertical.
C) the demand curve is downward sloping and the firm is on the inelastic portion of the demand curve.
D) the demand curve is a rectangular hyperbola.
Answer: B
You might also like to view...
If the U.S. demand for British pounds increases,
a. the dollar price of a British pound will increase b. the dollar price of a British pound will decrease c. the exchange rate between dollars and pounds will be out of equilibrium d. the pound will fall in value against the dollar e. there will be no change in either the value of the dollar or the pound
The slope of the per-worker production function diminishes as the amount of capital per-worker increases. This is a reflection of the law of _____
a. increasing marginal returns b. diminishing marginal returns c. constant marginal returns d. first diminishing then increasing marginal returns e. demand
Bert faces a progressive tax structure that has the following marginal tax rates: 0 percent on the first $10,000 . 10 percent on the next $10,000 . 15 percent on the next $10,000 . 25 percent on the next $10,000 . and 50 percent on all additional income. If Bert earns $75,000 . what is his average tax rate?
a. 20 percent b. 25 percent c. 30 percent d. 36.67 percent
Which of the following concepts is most helpful in explaining why investment increases when the interest rate falls?
a. deadweight loss b. present value c. economic growth d. financial intermediation