When the demand for a good is inelastic and its price increases, the total revenue from the sale of the good will ________
A) increase
B) decrease initially and then increase
C) decrease
D) not change
A
You might also like to view...
What are the similarities and differences between a short-run supply curve and a short-run market supply curve?
What will be an ideal response?
The public debt is the:
a. Difference between current government expenditures and revenues b. Total of all past deficits minus all past surpluses c. Ratio of all past deficits to all past surpluses d. Amount of U.S. paper currency in circulation
Which of the following examples has an elastic supply curve?
a. An 8 percent increase in the price of wrenches results in a 6 percent increase in quantity supplied. b. An 11 percent increase in the price of nails results in a 15 percent increase in quantity supplied. c. A 15 percent increase in the price of plugs results in a 12 percent increase in quantity supplied. d. A 20 percent increase in the price of plywood results in a 20 percent increase in the quantity supplied.
A reduction in the central bank's inflation target shifts the dynamic aggregate demand curve to the left resulting in:
A. higher current output and higher inflation. B. lower current output and higher inflation. C. higher current output and lower inflation. D. lower current output and lower inflation.