Along a linear demand curve, as the price increases from zero,
a. demand decreases
b. demand increases
c. quantity demanded increases
d. total revenue first increases but eventually decreases
e. total revenue first decreases but eventually increases
D
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It is possible to represent three dimensions on a two-dimensional graph by using
A. a contour map. B. a razor blade. C. curved lines. D. All of these responses are correct.
If the market price is lower than a perfectly competitive firm's average total cost, the firm will
A) immediately shut down. B) continue to produce if the price exceeds the average fixed cost. C) continue to produce if the price exceeds the average variable cost. D) shut down if the price exceeds the average fixed cost. E) shut down if the price is less than the average fixed cost.
The price that we observe in the market is
A) the law of demand. B) a substitute. C) the money price. D) the relative price.
A person is more likely to increase labor supply in response to an increase in the real wage, the ________ is the income effect and the ________ is the substitution effect.
A. smaller; smaller B. larger; smaller C. smaller; larger D. larger; larger