If the demand for cigarettes is inelastic,
A. A price reduction will actually cause the quantity demanded to fall.
B. No matter how high the price goes, the quantity demanded will not fall.
C. Total revenue will fall if the price of cigarettes rises.
D. Total revenue will rise if the price of cigarettes rises.
Answer: D
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The Chicago Board of Trade promotes liquidity in the futures market by
A) setting prices. B) establishing a price floor. C) allowing the short or the long to renegotiate contract terms. D) standardizing contract terms.
The fixed cost curve:
A. is steep when output levels are low, then flattens as output increases. B. is flatter when output levels are low, then gets steeper as output increases. C. is a constant, flat line. D. is a constant, vertical line.
The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production. B. value of the final product. C. profit margin. D. mark up.
The value of a human life
A. can be estimated by potential future earnings. B. can be subjected to cost-benefit analysis. C. is an intangible that is hard to price. D. all of these answer options are correct.