In the provided graph, the equilibrium point in the market is where the S and D curves intersect. At equilibrium, the total revenues received by sellers would be represented by the area
A. b + c + d.
B. a + b.
C. b.
D. b + c.
Ans: D. b + c.
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The elasticity of a straight-line demand curve is the same as its slope.
Answer the following statement true (T) or false (F)
If people buy less chewing gum at every price when their incomes fall, then:
a. chewing gum is a normal good. b. the demand for chewing gum is positively sloped. c. demand for chewing gum has increased. d. the price of chewing gum has increased. e. there has been a decrease in population that changed demand.
Since a tax imposed on buyers of a product only affects demand, such a tax has no impact on sellers in that market
a. True b. False Indicate whether the statement is true or false
If the world price of a good is greater than the domestic price in a country that can engage in international trade, then that country becomes an importer of that good
a. True b. False Indicate whether the statement is true or false