Suppose the total-revenue curve is derived from a particular linear demand curve. That demand curve must be
What will be an ideal response?
unit elastic for price increases that reduce quantity demanded from 5 units to 4 units.
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The balanced budget multiplier applies when a $50 billion increase in government expenditure is financed by a $50 billion ________ in tax revenue and the balanced budget multiplier shows that in this case there is ________ effect on aggregate demand
A) increase; no B) decrease; a positive C) increase; a positive D) increase; a negative E) decrease; no
In the above figure, a change in autonomous consumption to 100 would cause the consumption function to
A) become steeper. B) become flatter. C) shift down. D) shift up.
The form of business organization responsible for generating the greatest portion of business revenues in the United States is the
A) corporation. B) dual proprietorship. C) proprietorship. D) partnership.
The short-run supply curve is ________ and the long-run supply curve is ________ in a perfectly competitive market in which all firms have identical cost structures.
A. upward sloping; perfectly elastic B. downward sloping; upward sloping C. perfectly elastic; upward sloping D. upward sloping; upward sloping