Assume that when a lamp manufacturer decreases its price its total revenue does not change. What do we know?
A. Demand is price inelastic.
B. Demand is price elastic.
C. Demand is unit elastic.
D. Demand is perfectly price elastic.
Answer: C
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The environmental Kuznets curve suggests that
a. the environment deteriorates with development b. the environment deteriorates up to some level of GDP then improves c. open economies have less environmental problems d. low-income countries have more environmental problems e. none of the above
An inflow of investment funds into the United States from overseas is likely to result from a(n):
A. Decline in expectations for economic growth in the United States B. Growing belief among investors that the U.S. dollar ($) is overvalued C. Rise in U.S. interest rates relative to world interest rates D. Increase in the U.S. inflation rate
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Economists John Cogan, Glenn Hubbard, and Daniel Kessler have estimated that ________ the tax preference for employer-provided health insurance would reduce spending by people enrolled in these programs by 33 percent
A) enacting B) cutting in half C) repealing D) doubling