If demand is price inelastic and the price is lowered, which of the following occurs?
A) The quantity sold decreases.
B) The total expenditure increases and the total revenue decreases.
C) The total revenue of the firms selling the product is unchanged.
D) The total revenue of the firms selling the product decreases.
E) The total expenditure decreases and the total revenue increases.
D
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In a competitive market, which of the following is a defining characteristic?
A. The firm sets its own prices. B. The firm takes prices set by the government. C. The firm can easily enter the market but not exit the market. D. The firm is just one of many firms within that market.
An increase in the number of buyers in the market for LED TVs would cause the market demand curve for LED TVs to:
A) shift right. B) shift left. C) stay the same because market demand doesn't depend on the number of buyers. D) shift left or right depending on whether the new buyers purchase more or less than existing customers at each price.
Compared with the average man, the average woman pays
A) less for health insurance but more for life insurance. B) less for life insurance but more for health insurance. C) more for life and health insurance. D) less for life and health insurance.
If the demand for a product increases in an increasing cost industry, as the market adjusts in the long run:
a. price will rise. b. the firm's per-unit cost will increase. c. the firm's per-unit cost will fall. d. the market price will return to its initial position.