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

Economics

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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.

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The goal of the firm is

A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.

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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

Economics

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.

Economics