Which of the following is correct?
A. If the demand for a product is inelastic, a change in price will cause total revenue to
change in the opposite direction.
B. If the demand for a product is inelastic, a change in price will cause total revenue to
change in the same direction.
C. If the demand for a product is inelastic, a change in price may cause total revenue to
change in either the opposite or the same direction.
D. The price elasticity coefficient applies to demand, but not to supply.
Answer: B
You might also like to view...
Agents hire principals
Indicate whether the statement is true or false
In 1983, one could buy a model radio-controlled airplane for $11.50 each. Those same planes are available today and the price increased at exactly the rate of inflation. If the CPI today is 220.5 and in 1983 was 105, what is the price of the airplane today?
a. $24.15 b. $11.50 c. $5.48 d. $2.10
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The difference between the interest rate on a loan and the inflation rate is the
A. expected interest rate. B. inflation premium. C. nominal interest rate. D. real interest rate.