If demand is elastic, then when price rises, total revenue will decrease.
Answer the following statement true (T) or false (F)
True
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What is the key assumption about marginal utility?
What will be an ideal response?
In short-run equilibrium in a perfectly competitive market, firms always make zero economic profit
a. True b. False Indicate whether the statement is true or false
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P3 as shown in Figure (c). This tariff will cause
a. imports to rise.
b. exports to become Qe.
c. the domestic quantity demanded to be satisfied entirely by the domestically quantity supplied.
d. All of the above.
In the short run, total spending affects ________, and in the long run total spending affects ________.
A. prices; unemployment B. output; unemployment C. prices; output D. output; prices