Which of the following statements is true?
A) If the price of a good is raised and total revenue does not change, demand is perfectly elastic.
B) If the price of a good is lowered and total revenue increases, demand is inelastic.
C) If the price of a good is lowered and total revenue decreases, demand is elastic.
D) If the price of a good is raised and total revenue increases, demand is inelastic.
D
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Which of the following statements is true?
A) If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) An increase in supply causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
The quantity theory of money builds on the equation of exchange. What specific assumptions are made that turn the equation of exchange from an accounting identity into an economic theory?
If a bank uses $200 of excess reserves to make a new loan when the reserve ratio is 15 percent, this action by itself initially makes the money supply
a. and wealth increase by $200. b. and wealth decrease by $200. c. increase by $200 while wealth does not change. d. decrease by $200 while wealth decreases by $200.
The labor supply curve shows how many workers are willing to work
A. at any given wage. B. in order to maximize the firm's profit. C. at the minimum wage. D. at any given time. E. in a particular industry.