Refer to the total revenue graph below. If the quantity of product X demanded falls from 14,000 to 10,000 units, then it suggests that the price of X was:
A. Reduced and the demand is elastic
B. Increased and the demand is elastic
C. Reduced and the demand is inelastic
D. Increased and the demand is inelastic
D. Increased and the demand is inelastic
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Since the period following World War II (the early 1950s), the proportion of most countries' production being used in some other country
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend. E) increased slightly before dropping off.
If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending?
A. $640 million B. $800 million C. $1 billion D. $1.8 billion
Critics of government frequently assert that special interest groups favor transfer policies rather than economic growth policies
Indicate whether the statement is true or false
Which of the following does not describe a characteristic of short-term economic fluctuations?
A. The unemployment rate rises during recessions. B. Expansions and recessions are felt throughout the economy. C. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. D. Expansions and recessions are irregular in length and severity.