If the elasticity of demand for bagels is equal to 1, moving along the demand curve for bagels, an increase in price will:
a. not affect the quantity purchased
b. decrease the quantity demanded and increase total revenue.
c. decrease the quantity demanded and decrease total revenue.
d. decrease the quantity demanded and leave total revenue unchanged.
d
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of total economic surplus equals area(s)
A. A + B + C + D. B. B + C. C. B + C + D. D. D.
What is the price of a TV in an open economy with a quota?
A. $100 B. $75 C. $150 D. $125
Potential investors expect to be compensated for additional risk by above-average interest rates.
Answer the following statement true (T) or false (F)
Silent auctions are an example of what type of price discrimination?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.