If the demand curve facing a firm had a price elasticity of demand equal to infinity and the firm raised its price, its total revenue would:
A. decrease slightly.
B. fall to zero.
C. not change.
D. increase.
Answer: B
You might also like to view...
If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by
A) $2,400. B) $6,000. C) $24,000. D) $60,000.
Write an essay on the importance of a sound banking system in developing countries
What will be an ideal response?
The U.S. Treasury is responsible for preparing and submitting the initial budget recommendation to the president
a. True b. False Indicate whether the statement is true or false
Suppose the market-equilibrium quantity of good x is larger than the socially-optimal quantity of good x. Does the production of good x convey a positive externality or does it convey a negative externality?