Refer to the following graph.
If price is currently at B and rises, total revenue will rise.
Answer the following statement true (T) or false (F)
False
At prices higher than B, elasticity is greater than 1. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Therefore, a rise in price at a point above B will lead to a more than proportional fall in quantity demanded, and therefore total revenue will fall.
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To encourage the efficient number of people to be vaccinated the government could A) give producers a subsidy equal to the private marginal benefit. B) give consumers a voucher equal to the marginal external benefit. C) impose a tax equal to the marginal social benefit. D) impose a tax equal to the marginal external benefit.
An increase in the wages paid to fishermen will have what effect on the fish market equilibrium?
a. Price will decrease, and quantity will decrease. b. Price will increase, and quantity will increase. c. Price will decrease, and quantity will increase. d. Price will increase, and quantity will decrease. e. Price and quantity will stay the same.
A central bank holds foreign exchange reserves for:
A. safekeeping. B. foreign exchange interventions. C. diversification purposes. D. diversification and safekeeping.
Business-cycle macroeconomics involves changes in Real GDP around a ____________ LRAS curve, while economic-growth macroeconomics deals with increases in Real GDP resulting from a ______________ LRAS curve
A) rightward-shifting; fixed B) fixed; leftward shifting C) leftward shifting; fixed D) fixed; rightward-shifting