Producers' total revenue will increase if
A) income increases and the good is an inferior good.
B) the price rises and demand is elastic.
C) the price rises and demand is inelastic.
D) income falls and the good is a normal good.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
George is debating whether to concentrate on playing professional football or professional baseball. He is offered $6 million a year to play baseball and $7 million a year to play football. If he chooses to play football
A) the economic rent in his salary is $7 million. B) the economic rent in his salary is $6 million. C) the economic rent in his salary is $1 million. D) the economic rent in his salary is $13 million.
Compared with generic products, a brand name:
a. reduces the price elasticity of demand and gives a firm more market power. b. increases the price elasticity of demand and gives a firm more market power. c. increases the price elasticity of demand and gives a firm less market power. d. reduces the price elasticity of demand and gives a firm less market power. e. has no effect on price elasticity of demand or market power.
Refer to the accompanying table. Julia's opportunity cost of making a pie is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 60 cakes. B. 5/6 of a cake. C. 6 cakes. D. 6/5 of a cake.