Explain the total revenue test
What will be an ideal response?
The total revenue test estimates whether demand for the good is elastic, unit elastic or inelastic based on what happens to total revenue when the price of a good changes. If price and total revenue move in opposite directions, demand is elastic. If price and revenue move in the same direction, demand is inelastic. If a price change does not change total revenue, demand is unit elastic.
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Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is set below the equilibrium price. What do you expect to happen?
a. A surplus will develop. b. A shortage will develop. c. Quantity demanded will decrease. d. The number of outpatient visits will rise. e. The demand for outpatient procedures will fall.
The Bretton Woods system collapsed because:?
What will be an ideal response?
If a production possibilities boundary is a curve concave to the origin and not a straight line, then:
A. there are unemployed resources. B. resources are not equally suited to producing alternative products. C. resources are perfectly interchangeable to alternative uses. D. resources are equally suited to producing alternative products.
The Social Security System includes three separate programs. They are
A. Disability Insurance, Medicare, and Temporary Assistance to Needy Families (TANF). B. Old Age and Survivors Insurance, Medicare, and Unemployment Compensation. C. Old Age and Survivors Insurance, Medicare, and Medicaid. D. Old Age and Survivors Insurance, Disability Insurance, and Health Insurance.