Dusty Rags, Inc provides janitorial services to retail stores. Dusty had been charging $10 per hour and selling 400 hours of service per week at that rate. When he raised his price to $15 per hour, his customers cut back to 300 weekly hours of service. Which of the following is true?
a. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand curve for his services must have shifted to the right.
b. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be elastic.
c. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be inelastic.
d. Revenue went from $400 to $300 per week, indicating that demand must be elastic.
e. Revenue went from $10 to $15 per week, indicating that demand must be inelastic.
C
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A shift in demand toward the home country's goods would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy
A) lower; increase B) lower; decrease C) raise; increase D) raise; decrease
An increase in second-period income results in
A) an increase in first-period consumption, an increase in second-period consumption, and an increase in saving. B) an increase in first-period consumption, a decrease in second-period consumption, and an increase in saving. C) a decrease in first-period consumption, an increase in second-period consumption, and an increase in saving. D) an increase in first-period consumption, an increase in second-period consumption, and a decrease in saving.
Suppose an investment will yield $1,000 after one year and $2,000 after two years. What is the present value of this investment if the discount rate is 8 percent?
a. $2,479.34 b. $2,640.60 c. $2,727.27 d. $3,000 e. $3,520
Which of the following statements best illustrates the form of an economic theory?
A. If A, then B. B. If A, then B, when C, D, E, and F are also changing. C. A, B, and C all occurred at the same time. D. If A, then B, other things held constant.