Revenue remains unchanged along a straight-line demand curve.
Answer the following statement true (T) or false (F)
False
Revenue is greatest at the midpoint of a straight-line demand curve (where elasticity of demand equals 1) and falls on either side.
You might also like to view...
Firms exist because of the low cost associated with creating complete contracts
Indicate whether the statement is true or false
Suppose that in most car collisions between cars of unequal size, the smaller car sustains the most damage and its occupants suffer the most injury. In answering the following question, assume that, on average, smaller cars generate less air pollution than larger cars and that every person in the economy drives at least one car. Suppose the size of all cars increased by 25 percent. Collisions between two cars would cause ________ and air pollution would ________.
A. greater injury; increase B. neither greater nor less injury; increase C. less injury; increase D. neither greater nor less injury; remain the same
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. The expected value of the payoff is ________ for the first game and ________ for the second game.
A. $4.50; $5.75 B. $5.00; $4.50 C. $5.75; $5.25 D. $5.75; $4.50
Holding all other prices and money income constant, if the price of food rises, then the consumer will adjust her expenditures and
A. reach an optimum on the same indifference curve. B. reach an optimum on a lower indifference curve. C. reach an optimum on a higher indifference curve. D. her level of satisfaction may go up or down.