The price elasticity of demand for eggs is -0.27. Therefore, an increase in the price of eggs will cause:
A. a decrease in egg suppliers' total revenue.
B. an increase in the quantity demand of eggs.
C. an increase in egg suppliers' total revenue.
D. an increase in the demand for eggs.
Answer: C
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A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the producer and consumer surplus in the entire market?
What will be an ideal response?
According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
A. The quantity of labor demanded by profit-maximizing firms will decline. B. The quantity of labor demanded by profit-maximizing firms will increase. C. The quantity of labor supplied by workers will decline. D. There will be a shortage of labor in the unionized labor market.
If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items. B. receive the same weight as cheaper items. C. receive a smaller weight than cheaper items. D. are double counted.
The question of "What goods and services get produced?" most closely relates to which of the following issues?
A) obtaining specialized training to increase one's income B) building a missile defense system, or putting a computer in every elementary school classroom C) taxing high income workers to give payments to poor households D) the distribution of goods and services in the economy E) producing goods and services in the least costly manner