If the price of good X falls and the demand for good X is unit elastic, then the percentage rise in quantity demanded is __________ the percentage fall in price, and total revenue __________.
A) greater than; rises
B) less than; falls
C) equal to; remains constant
D) greater than; falls
E) less than; rises
Ans: C) equal to; remains constant
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The figure above portrays a total revenue curve for a perfectly competitive firm. Curve A is straight because the firm
A) is a price taker. B) faces constant returns to scale. C) wants to maximize its profits. D) has perfect information.
A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false
Which of the following best describes a situation where research is considered appropriable?
A) research that is well suited to its commercial purpose B) research that is easily copied by another firm C) research that translates into many new products D) all of the above E) none of the above