If demand is unit elastic:
a. Total revenue and prices rise and fall together
b. Total revenue rises as price falls.
c. Total revenue falls as price rises.
d. Total revenue remains constant as price rises or falls.
d
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A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship
If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a A) negative relationship, also called a direct relationship. B) negative relationship, also called an inverse relationship. C) positive relationship, also called a direct relationship. D) positive relationship, also called an inverse relationship.
The cross price elasticity of demand between two goods is 50. We may conclude that
A) the two goods are very complementary and probably are sold together. B) the two goods are poor substitutes for each other. C) the demand for one of the goods is likely to be fairly elastic and the demand for the other good is likely to be fairly inelastic. D) the demand for each of the goods is likely to be very elastic.
When the aggregate supply curve shifts adversely, what happens to the relationship shown in the Phillips curve?
A. It is reinforced, and made more applicable for policy. B. It is destroyed, and no longer applies for policy. C. It is unchanged, although the curve becomes less steep. D. It is unchanged, although the curve shifts inward and to the left.
Which of the following is least likely to issue commercial paper?
A) General Motors Acceptance Corporation B) A large bank holding company C) General Electric D) The U.S. Treasury