The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases.
B) total revenue decreases.
C) total revenue remains unchanged.
D) the quantity demanded increases by less than 20 percent.
A
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Customer service representatives who have lost their jobs as a result of call centers being outsourced to India are an example of
A) structural unemployment. B) voluntary unemployment. C) frictional unemployment. D) cyclical unemployment.
At a competitive equilibrium with no externalities, taxes, subsidies, public goods, common resources, or high transactions costs, which of the following occurs?
i. an efficient outcome ii. definitely a fair outcome when judged by the fair-results approach iii. marginal cost equals marginal benefit iv. producer surplus equals consumer surplus A) i and iii B) i, ii and iii C) ii and iii D) i, ii, iii and iv E) only i
Under rent controls
A) there is a shortage of rental units. B) the quantity supplied of rental units is greater than it would be under freely competitive markets. C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. D) all renters are better off than under freely competitive markets.
Under monopoly
a. too small a share of society's resources is used to produce the monopolized commodity. b. Adam Smith's invisible hand assures efficient resource allocation. c. too large a share of society's resources is being used to produce the monopolized commodity. d. MC > MU.