If a price decrease of a product significantly raises its revenues, then the absolute price elasticity of demand for that product must be
A) less than one.
B) equal to one.
C) greater than one.
D) an example of unit elasticity.
Answer: C
You might also like to view...
Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus, the demand for labor
A. will decrease. B. will increase. C. may either increase or decrease. D. will not change.
Everything else held constant, a decrease in the cost of production ________ aggregate ________
A) increases; demand B) decreases; demand C) increases; supply D) decreases; supply
Judging from the table showing income inequality in the United States, the Great Depression and new social programs of the 1930s, plus the impact of World War II, caused the proportion of income earned by the wealthiest Americans to ______.
a. drop significantly
b. drop slightly
c. rise slightly
d. rise dramatically
Indifference curves can never cross on a preference map.
Answer the following statement true (T) or false (F)