Assume that as a firm decreases its price its total revenue decreases. Which of the following is a possible value of its price elasticity of demand?
A. 0.4
B. 1
C. 1.4
D. 4
Answer: A
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One reason the total sum of the income categories does not equal GDP is that
A) taxes are generally larger than subsidies and the depreciation of capital is negligible. B) GDP values goods and services at retail prices and the income approach values them at wholesale cost. C) people do not spend all their income, so the value of consumption expenditure is less than the value of wages. D) GDP does not include depreciation, which is part of the income categories. E) GDP values goods and services at market prices and the income approach values them at factor cost.
In general, the gains over time from saving in a managed fund like a mutual fund are much higher than those from saving money in a standard savings account in a bank
a. True b. False Indicate whether the statement is true or false
An inverse relationship exists when:
A. there is no association between two variables. B. one variable increases and there is no change in the other variable. C. one variable increases and the other variable increases. D. one variable increases and the other variable decreases.
The "production function" that we have used to illustrate key macro ideas
A) Incorporates the of concept of scarcity of resources B) Incorporates the idea that capital and labor can be traded off, to some extent, in order to produce output C) Incorporates the principle that resources must be used to create goods and services D) all of the above