If an increase in price leads to a decrease in total revenue,
A. demand is elastic.
B. demand is inelastic.
C. demand is unit elastic.
D. there is not enough information to determine the elasticity of demand.
A. demand is elastic.
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When there is political instability in another country, the United States can expect
A) an increase in the capital account balance due to an increase in the current account. B) an increase in the capital account balance due to the movement of assets to the U.S. C) a decrease in the balance of payments due to a decrease in special drawing rights. D) a decrease in the balance of payments due to a decrease in the demand for goods and services.
Suppose that over time, consumers used discount stores at an increasing rate, the CPI would tend to be
a. accurate b. underestimated because consumers would buy goods and services at lower prices than those collected by the BLS c. underestimated because consumers would buy goods and services at higher prices than those collected by the BLS d. overestimated because consumers would buy goods and services at lower prices than those collected by the BLS e. overestimated because consumers would buy goods and services at higher prices than those collected by the BLS
For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140 . Marginal revenue at that output level is
a. equal to $140. b. greater than $140. c. less than $140. d. less than marginal cost. e. greater than average revenue.
If U.S. quotas on imported sugar were eliminated,
A. The world price of sugar would rise. B. The supply of sugar in the United States would shift to the right and sugar prices would fall. C. The demand for sugar in the United States would shift to the left and prices would fall. D. The supply of sugar in the United States would shift to the left and prices would rise.