If a 20 percent decrease in the price of a good leads to a 15 percent increase in the quantity demanded, then demand is ________ and total revenue will ________ as a result of the fall in price
A) elastic; increase
B) elastic; decrease
C) inelastic; increase
D) inelastic; decrease
D
You might also like to view...
A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a negative externality. B) a patent. C) a protectionism clause. D) a positive externality.
Both a defendant and plaintiff believe there is an 80 percent chance that the plaintiff will win $500,000 and a 20 percent chance that the plaintiff will lose and be awarded nothing (zero). If the plaintiff's litigation cost is $150,000 and the defendant's litigation cost is $200,000, the defendant would be willing to pay any amount up to ________ to settle.
A) $250,000 B) $200,000 C) $600,000 D) $550,000
Income assistance benefits are
a. taxed at a high marginal rate, in the sense that benefits sharply decrease as earned income increases b. taxed at a 20 percent marginal rate c. taxed at a high marginal rate in order to provide work incentives d. unaffected by increases in earned income e. positively related to income from other sources
A matrix is a network of unrelated companies trying to jointly capture economies of scale
Indicate whether the statement is true or false