If University of Nebraska increased its season football ticket sales from 43,000 to 47,000 when it lowered price from $350.00 to $300.00, then its demand for season tickets must be ________ because total revenue ________ when the price was lowered
A) elastic; decreased
B) elastic; increased
C) inelastic; decreased
D) inelastic; increased
C
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Suppose that the economy is in long-run equilibrium and the government decided to engage in expected expansionary policy by increasing the money supply
If we assume rational expectations, which of the following statements is correct about the effect of expansionary policy in the long run? A) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will decrease. B) The unemployment rate will increase, real GDP will increase and the price level will increase. C) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will increase. D) The unemployment rate will decrease, real GDP will decrease and the price level will decrease.
The demand curve for labor slopes downward because: a. few workers are willing to work at low wages
b. capital has been substituted for labor in most industries. c. of the diminishing marginal product of labor. d. of all of the above.
A tax on sellers:
A. shifts the demand curve vertically downwards by the amount of the tax, but does not affect the supply curve B. causes equilibrium price and quantity to decrease. C. causes a shortage in the market. D. shifts the supply curve vertically upwards by the amount of the tax, but does not affect the demand curve.
An open market sale of bonds by the central bank will cause which of the following when a liquidity trap situation exists?
A) The interest rate will increase. B) The interest rate will not change. C) Output will decrease. D) The money supply, M, will not change. E) none of the above