On a part of the demand curve where the price elasticity of demand is less than 1, a decrease in price:
a. is impossible.
b. will increase total revenue.
c. will decrease total revenue.
d. raises the price elasticity of demand.
e. decreases quantity demanded.
c
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How can the federal government use discretionary fiscal policy to stimulate the economy?
What will be an ideal response?
A stock is purchased either for the expected gain in the price of the stock, for the dividends that the stock may pay, or both.
Answer the following statement true (T) or false (F)
The "accelerator hypothesis" of investment states that a firm's net investment is most closely related to the
A) level of its actual sales. B) change in its actual sales. C) level of its expected sales. D) change in its expected sales.
The supply curve will be more inelastic when:
A. inputs to production are scarce. B. firms' response to a price change is limited by the limited capacity of their production facilities. C. a good has many substitutes. D. the firm is experiencing diminishing returns to a variable input.