If the price elasticity of demand for a product equals 1, as its price rises the
A) quantity demanded increases.
B) total revenue increases.
C) quantity demanded does not change.
D) total revenue does not change.
D
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A franchisee works than a salaried manager of company store because
a. Less, he doesn't get to keep the additional profits he generates b. Harder, he gets to keep the additional profits he generates c. Lesser, he is generally lazy d. Harder, he doesn't get to keep the additional profits he generates
A government-imposed price floor above the market price of milk would increase consumers' expenditures on milk only if
a. demand is elastic b. supply is inelastic c. demand falls d. demand is inelastic e. supply is unit elastic
This graph depicts a tax being imposed, causing demand to shift from D1 to D2. According to the graph shown, the tax caused:
A. positive government revenue and decreased consumption.
B. zero government revenue and decreased consumption.
C. a transfer of revenue to surplus and increased consumption.
D. positive government revenue and increased consumption.
"Market power" is an expression used to indicate that a firm has
a. no rivals. b. the power to sell a given output at whatever price it chooses. c. some freedom from the rigors of intense competition. d. a monopoly over the product it produces.