A physician's office expenses increase by 10 percent, so the doctor decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue rise if demand is inelastic.
b. Office visits and total revenue stay the same if demand is elastic.
c. Office visits will fall and total revenue will rise if demand is inelastic.
d. Office visits will rise and total revenue will fall if demand is elastic.
e. Office visits and total revenue fall if demand is inelastic.
c. Office visits will fall and total revenue will rise if demand is inelastic.
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Two people are involved in a borrower/lender situation, and one person has superior knowledge of its own current and future prospects over the other person. This is known as
A) symmetric information. B) deceptive knowledge. C) preventable information. D) asymmetric information.
The consumer acquires a consumer surplus on a good if the marginal benefit is
A) equal to the price. B) greater than the price. C) less than the price. D) zero. E) less than the marginal cost.
In the above table, the cross price elasticity of demand for good C with good B when PB rises from $15 to $18 is
A. +2.20. B. -1.10. C. +1.10. D. -2.20.
From Table 2.3, at the price of $1, there is a 
A. shortage of 5. B. shortage of 4. C. surplus of 4. D. neither a shortage nor a surplus.