If a price reduction leads to larger total revenue, demand is
a. perfectly inelastic
b. inelastic
c. unit elastic
d. elastic
e. perfectly elastic
D
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Taxing savings will cause people to save more.
A. True B. False C. Uncertain
When economic rent exists,
A) the price is equal to the opportunity cost of the resources. B) price is the same as the discount rate. C) resources are allocated inefficiently. D) resources are allocated efficiently.
If a monopolist were to produce in the inelastic segment of its demand curve
A) total revenue would be at a maximum. B) total revenue would be at a minimum. C) the firm would maximize profits. D) a further drop in the price will change quantity demanded less than proportionately.
This monopolist
A. is in the short run.
B. is in the long run.
C. may be in the short run or the long run.