In a constant-cost industry, an increase in demand will be followed by
A) no increase in supply.
B) an increase in supply that will not change price from the higher level that occurs after the demand shift.
C) an increase in supply that will bring price down to the level it was before the demand shift.
D) an increase in supply that will bring price down below the level it was before the demand shift.
E) a decrease in demand to keep price constant.
C
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Refer to the scenario above. What is the probability of losing?
A) 20% B) 50% C) 75% D) 100%
According to the U.S. Treasury,
A) creditors do not have to accept cash in payment of debts. B) U.S. dollars must be accepted as payment for any good or service sold in the United States. C) firms do not have to accept cash as payment for goods and services. D) the government will not accept cash in payment of taxes.
Mr. Smith earns $100,000 per year. Each year he spends $50,000 and saves $50,000. He pays a 5 percent sales tax on all of his spending. Assuming the sales tax is the only tax he pays, his average tax rate out of his income is
A) 0 percent. B) 2.5 percent. C) 3.5 percent. D) 5.0 percent.
When demand is inelastic, a decrease in price increases total revenue
a. True b. False Indicate whether the statement is true or false