In which of the following situations will total revenue increase?
a. Price elasticity of demand is 1.2, and the price of the good decreases.
b. Price elasticity of demand is 0.5, and the price of the good increases.
c. Price elasticity of demand is 3.0, and the price of the good decreases.
d. All of the above are correct.
d
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As the dollar depreciates relative to the Russian ruble, U.S. goods become cheaper for Russians to purchase. Therefore, in the foreign exchange market, the
A) supply curve of dollars is downward sloping. B) demand curve for dollars is downward sloping. C) demand curve for euros is upward sloping. D) supply curve of euros is downward sloping.
Producer surplus equals
A) total revenue minus total variable cost. B) total revenue minus the sum of all marginal cost. C) profit plus fixed cost. D) All of the above.
In which of the following cases will the total spending on a good decrease?
a. Demand is inelastic, and price increases. b. Demand is elastic, and price increases. c. Demand is elastic, and price decreases. d. Demand is of unit elasticity, and price decreases.
Adding foreign financial assets to an investment portfolio raises the riskiness of the entire portfolio of investments.
Answer the following statement true (T) or false (F)