If the demand for a good is extremely inelastic, a large increase in the cost of supplying it will
A) raise its price substantially and increase the total dollars spent to purchase it.
B) raise its price substantially but decrease the total dollars spent to purchase it.
C) raise its price very little and decrease the total dollars spent to purchase it.
D) raise its price very little but increase the total dollars spent to purchase it.
A
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The existence of discouraged workers: a. increases the size of the labor force, but does not affect the unemployment rate
b. affects neither the size of the labor force nor the unemployment rate. c. may cause the official unemployment rate to understate the true amount of unemployment. d. may cause the official unemployment rate to overstate the true amount of unemployment.
A binding price ceiling causes a shortage in the market
a. True b. False Indicate whether the statement is true or false
On the graph for a monopolist’s profit, area DABC shows ______.
a. marginal cost
b. total cost
c. marginal profit
d. total profit
The real GDP refers to the value of final output produced in a given period, adjusted for
A. Fixed prices. B. Final prices. C. Changing prices. D. No prices.