Which of the following is FALSE regarding inelastic demand?
A. Price elasticity of demand is less than 1 (Ep < 1).
B. If a firm raises price, total revenues will go up.
C. If a firm lowers price, total revenues will fall.
D. Price elasticity of demand is greater than 1 (Ep > 1).
Answer: D
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What price does a monopoly charge when it perfectly implements a two-part tariff?
a. The simple monopoly price. b. The competitive price. c. A price higher than that charged by a simple monopoly. d. A price between the monopoly and competitive prices.
The northwest boundary of the set of all portfolios is
a. the portfolio that maximizes return. b. the efficient set. c. the efficient portfolio. d. the portfolio that minimizes risk.
To make things simpler and focus attention on what really matters, economists:
A. use assumptions. B. ignore all variables. C. think at the margin. D. respond to incentives.
In the early 1990s, which nation took the lead in driving up European interest rates?
A) Spain B) France C) Germany D) England E) none of the above