Which of the following examples will have a fall in revenue?
a. When the price of hamburger buns decreases 10 percent, sales increase 12 percent.
b. When the price of ice cream decreases 4 percent, sales increase 8 percent.
c. When the price of lemons decreases 5 percent, sales increase 3 percent.
d. When the price of salsa decreases 8 percent, sales increase 8 percent.
c. When the price of lemons decreases 5 percent, sales increase 3 percent.
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If people assume that future rates of inflation will ________, they are said to have adaptive expectations
A) not be related to inflation rates of the past B) follow the pattern of inflation rates in the past C) be higher than inflation rates of the past D) be lower than inflation rates of the past
If in a market the last unit of output was sold at a price higher than marginal cost,
A) producers are better off producing more. B) consumers are better off if less of the product is sold. C) social welfare is not maximized. D) the unit increased total profit.
Whenever the opportunity costs of goods are significantly different in different countries, there are gains from specialization and trade
a. True b. False
Consumer spending is considered a determinant of economic growth
a. True b. False Indicate whether the statement is true or false