When demand is price inelastic:
a. price and total revenue move in the same direction.
b. price and total revenue move in the opposite direction.
c. total revenue increases whether price goes up or down.
d. total revenue decreases whether price goes up or down.
a
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Refer to Goods X and Y. If the marginal rate of good X in terms of good Y is large, then the indifference curve will be
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. convex. b. concave. c. steep. d. flat.
The above table shows the market shares for all the landscaping services in a suburban area. A merger between the three largest firms would
A) make the industry more competitive. B) increase the four-firm concentration ratio and increase the Herfindahl-Hirschman Index (HHI). C) increase the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI). D) decrease the four-firm concentration ratio and decrease the Herfindahl-Hirschman Index (HHI).
Open market purchases of government securities
A) are designed to increase trading on the stock exchange. B) generally decrease the money supply. C) always decrease the money supply. D) cause bank reserves to increase. E) all of the above
The fact that many primary and secondary school teachers enjoy work schedules that coincide with their children's school schedules:
A. implies that teachers will earn more than workers with similar qualifications in other jobs. B. implies that teachers will earn less than workers with similar qualifications in other jobs. C. arises because the market for teachers is a winner-take-all market. D. has no bearing on the wages of teachers relative to the wages of workers in other jobs.