Total revenue will fall if
A. demand for a good is inelastic and its price rises.
B. demand for a good is elastic and its price rises.
C. demand for a good is elastic and its price falls.
D. All of the choices are true.
B. demand for a good is elastic and its price rises.
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The above table shows production combinations on a country's production possibilities frontier. A movement from ________ involves the greatest opportunity cost of increasing the production of good Y
A) point E to point D B) point D to point C C) point C to point B D) point B to point A
More recent studies of new Keynesian inflation dynamics indicated that the average price-adjustment intervals in the United States are
A) are one year or less. B) two years or less. C) four years or less. D) more than four years.
Based on your findings, show that the new lead standard passed the feasibility test for this three-year period.
REGULATORY IMPACT ANALYSIS (RIA) FOR LEAD IN DRINKING WATER In June 1991, the EPA announced a maximum contaminant level goal (MCLG) of zero for lead and a more stringent maximum contaminant level (MCL) of 0.015 mg/l. This new primary standard lowered the allowable lead level in drinking water from its former limit of 50 parts per billion (ppb) to 15 ppb. Because these regulations were expected to have a substantial financial impact on the regulated community — in excess of $100 million per year, they were subject to Executive Order 12291 and had to be accompanied by a Regulatory Impact Analysis (RIA). A summary of the estimated benefits and costs (stated as annualized values) from this RIA, is given below. BENEFITS Health (based on avoided medical costs) From corrosion control and source water treatment: $2.8 – $4.3 billion per year From replacement of lead service lines $70 – $240 million per year Material Accruing to households and water systems $500 million per year Incremental Benefits $3.4 – $5.0 billion per year COSTS Treatment, implementation, education costs Treatment costs: $390 – $680 million Monitoring costs: $ 40 million Education costs: $ 30 million State implementation costs: $ 40 million Incremental Costs $500 – $790 million per year NET BENEFITS Net Benefits: $2.9 – $4.2 billion per year
Deadweight loss measures the loss in society's welfare that occurs because a monopolist does not produce the socially efficient level of output
a. True b. False Indicate whether the statement is true or false