If the U.S. Postal Service raised its first-class postage rate by 10 percent and found (to its surprise) total receipts from first-class mail service subsequently increased by 10 percent, the demand for first-class mail service would be
A) completely elastic.
B) completely inelastic.
C) greater than anticipated.
D) unit elastic.
E) upward sloping.
B
You might also like to view...
Export subsidies lead to lower prices of exportables for both domestic residents and foreigners
Indicate whether the statement is true or false
Other things equal, the supply of labor will be lower to a job that
a. offers more prestige b. offers valuable on-the-job training c. requires advanced skills or education d. provides a climate-controlled work environment e. allows for flexible work schedules
Temporary supply shocks:
A. are significant events that directly affect production. B. shift the aggregate-supply curve in the short run. C. would affect the short-run equilibrium. D. All of these are true.
The benefit to buyers of participating in a market is measured by
a. consumer surplus. b. producer surplus. c. total surplus. d. deadweight loss.