If demand is inelastic, an increase in the price of a good will cause total expenditures on the good to
a. fall.
b. remain constant since the decrease in quantity sold is exactly offset by the price increase.
c. rise.
d. rise if it is a normal good and fall if it is an inferior good.
C
You might also like to view...
If a demand curve shifts to the left, then
A) quantity demanded has increased. B) demand has increased. C) quantity demanded has decreased. D) demand has decreased.
A consequence of adverse selection is:
A. buyers gain surplus they would have lost with complete information. B. sellers gain surplus they would have lost with complete information. C. transactions do not take place that would have been possible if the parties had the same information. D. buyers make irrational decisions because they lack information.
In general, the only thing that can cause a sustained increase in the rate of inflation is: a. a high rate of growth in the supply of money. b. a significant increase in unemployment
c. a decrease in real GDP. d. an increase in federal income taxes.
Which of the following statements is false?
A) In recent years, the Chinese government has bought U.S. government bonds, raising interest rates in the United States. B) Among the key features of globalization is the growing integration of the national economies of the world. C) Globalization is associated with a movement toward more free enterprise. D) It is becoming increasingly common for Americans to work for foreign companies that have offices in the United States.