When demand is unit elastic, an increase in price will cause
A. a decrease in total revenue.
B. no change in total revenue.
C. a change in total revenue in either direction depending on whether the price is increasing or decreasing.
D. an increase in total revenue.
Answer: B
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In a competitive market with high cost and low cost consumers (where firms are unable to tell consumer types apart), any screening costs incurred by firms will be passed on to low cost consumer but not to high cost consumers.
Answer the following statement true (T) or false (F)
When the United States imports goods from the rest of the world, which of the following parties is harmed?
i. domestic producers of the good ii. domestic consumers of the good iii. foreign producers of the good A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Technological advances generally result in
A) increased average number of hours worked per day. B) increased infant mortality rates. C) decreased incomes. D) increased life expectancy.
Well-defined property rights give entrepreneurs the incentive to
A) engage in risky business endeavors in order to accumulate future wealth. B) use the eminent domain laws to seize property for public use. C) lobby Congress in order to increase environmental regulations. D) evade taxes.