Refer to the graph above. If the price of the product increases from $5 to $6 because of a decrease in supply that is shown by curve S, total revenue would:
A. stay the same.
B. decrease.
C. increase by $100.
D. increase by $300.
Answer: A
You might also like to view...
GDP would be a better measure of economic well-being if it included:
A. the value of leisure. B. the market value of final goods. C. the total value of intermediate goods. D. the costs of education.
Which of the following is considered by experts to have relatively little power within the Federal Reserve?
A) The Board of Governors B) The president of the New York Federal Reserve Bank C) The economic staff of the Board of Governors D) The Federal Advisory Council
The very low interest rates following the financial crisis of 2007-2009 resulted in:
A) many people moving their funds from CDs and money market accounts to checking accounts in order to have more liquidity without sacrificing much interest B) funds being transferred from checking accounts to time deposits C) further declines in checking accounts that began in the early 1970s D) people switching their funds from checking deposits to CDs in the pursuit of higher interest rates
If a market is allowed to adjust freely to its equilibrium price and quantity, then an increase in demand will
a. increase producer surplus. b. reduce producer surplus. c. not affect producer surplus. d. Any of the above are possible.