Which of the following describes a situation in which demand must be inelastic?
a. Total revenue decreases by 10 percent when the price of jeans rises by 10 percent.
b. Total revenue decreases by less than 10 percent when the price of jeans rises by 10 percent.
c. Total revenue increases by more than 10 percent when the price of jeans rises by 10 percent.
d. Total revenue decreases by $10 when the price of jeans rises by $10.
e. Total revenue decreases by more than $10 when the price of jeans rises by $10.
C
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When the Fed ________ the federal funds rate, other short-term interest rates ________ and the exchange rate ________
A) lowers; rise; rises B) raises; fall; rises C) raises; rise; rises D) raises; rise; falls E) lowers; rise; falls
If Sean sells Tom a tennis racket for $50, we would expect
a. both parties to gain from this transaction. b. Sean to gain from the transaction, while Tom loses. c. Tom to gain from the transaction, while Sean loses. d. the well-being of both parties to be unchanged.
Linda earned an income of $3,000 per month which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is her disposable income after the increase?
What will be an ideal response?
An income statement shows a firm's revenue, costs, and profit
A) for the firm's fiscal year. B) since the firm has been in operation. C) for a particular day. D) only if the firm is earning an accounting profit.