Suppose the price elasticity of demand for a product is 1 . If a supplier wants to increase revenue, what change should it make to price, if any?
No change, revenue is maximized.
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Explain what happens to the magnitude of price elasticity of demand as price increases along a straight-line demand curve.
What will be an ideal response?
Linking policy instruments to target variables are the
A) indices of economic welfare. B) structural economic relations. C) exogenous nonpolicy variables. D) irrelevant side effects.
The Great Depression of the 1930s opened the door to the ________ revolution in macroeconomic theory
A) Keynesian B) old classical C) New Keynesian D) New classical
Economic growth is:
A. an increase in our economy's potential output. B. represented by the long-run aggregate supply curve shifting to the right. C. a result of having more natural resources, land or capital. D. All of these are true.