A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues from good A to
A. decrease and total revenues from good B to increase.
B. increase and total revenues from good B to increase.
C. decrease and total revenues from good B to decrease.
D. increase and total revenues from good B to decrease.
Answer: C
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Mobil Energy Corp has a monopoly on gas sales in Texas. If the price of oil increases, the price of gas will
a. increase. b. decrease. c. remains the same. d. may increase or decrease.
The 2005-2008 Chinese policy with respect to the Yuan has been to
a. allow its currency to float. b. allow its currency to rise in value quickly. c. allow its currency to rise in value slowly. d. allow its currency to fall in value slowly. e. allow its currency to fall in value quickly.
In her calculation of the cost of going to college, an economist would include the amount of forgone earnings over the years spent at college
a. True b. False Indicate whether the statement is true or false
The authors of the text suggest that a comprehensive personal income tax with few loopholes would be efficient and equitable. What is their reasoning for this statement?