If the short run elasticity of demand for widgets is 0.7 and the long run elasticity of demand for widgets is 1.5, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run.
a. Increase; increase
b. Increase; decrease.
c. Decrease; increase.
d. Decrease; decrease.
c
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When government spending exceeds government revenues during a given period of time
A) the national debt must be decreasing. B) a budget surplus exists. C) Congress is obliged to raise taxes. D) a budget deficit exists.
The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
Which of the following will lead to an increase in the firm's short-run demand for labor?
A. an improvement in labor productivity B. a decrease in price of the final product's substitute good C. a decrease in the price of the final product D. a decrease in the number of buyers for the final product
Refer to the data provided in Table 9.3 below to answer the following question(s). Table 9.3qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 1100401404040 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.43Refer to Table 9.3. In the long run, if cost conditions do not change, this firm will earn a zero economic profit if price is
A. $20. B. $30. C. $40. D. $56.