An increase in total revenue results occurs from which of the following?
A. Price decreases when demand is inelastic.
B. Price increases when demand is elastic.
C. Price decreases when demand is elastic.
D. Price increases when demand is unitary elastic.
Answer: C
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Every society must follow some kinds of criteria to determine who gets what. Examples of such criteria include
A) age. B) gender. C) height. D) willingness to pay. E) all of the above.
Which of the following is TRUE regarding the chain-weighted output index method?
I. It is the method used to measure the growth rate of nominal GDP. II. It uses data from the current year and from the previous year. III. It is a method of measuring the growth rate of real GDP. A) I and II B) II and III C) I and III D) I, II and III
Suppose the intersection of the IS and LM curves is to the left of the FE line. A decrease in the price level would most likely eliminate a disequilibrium among the asset, labor, and goods markets by
A) shifting the LM curve down and to the right. B) shifting the IS curve up and to the right. C) shifting the IS curve down and to the left. D) shifting the FE curve to the left.
Assume that the world price of Commodity X is $9 per unit while its domestic price is $8, and the marginal cost of production is $6 per unit. If the government imposes a price ceiling of $7 on domestic output:
a. the import of Commodity X from the world market would stop. b. the world price of Commodity X would decline. c. a surplus of Commodity X would accumulate in the domestic market. d. a shortage of Commodity X would be observed in the domestic market.