If demand is price inelastic:
a) An decrease in price will raise revenue.
b) An increase in price decreases revenue.
c) An increase in price increases revenue.
d) A decrease in price reduces sales.
Answer: c) An increase in price increases revenue.
You might also like to view...
Since 1980 U.S. net capital outflow has been
a. negative, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad. b. negative, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States. c. positive, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad. d. positive, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States.
What is the difference between economies of scale and economies of scope? Provide an example of each that pertains to financial institutions.
What will be an ideal response?
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
If the economy is producing at potential GDP,
A) the Phillips curve must be positively sloped. B) unemployment is at its natural rate. C) inflation in the economy is at its natural rate. D) the short-run aggregate supply curve must be vertical.