Demand is said to be inelastic when
A. the absolute value of the price elasticity of demand exceeds 1.
B. an increase in price results in a reduction in total revenue.
C. a reduction in price results in an increase in total revenue.
D. a reduction in price results in a decrease in total revenue.
Answer: D
You might also like to view...
In a progressive tax system, ________
A) the average tax rate equals the marginal tax rate B) the marginal tax rate exceeds the average tax rate C) the average tax rate exceeds the marginal tax rate D) the average tax rate is equal for all taxpayers
The expected marginal benefit to you from purchasing a new sport utility vehicle is $20,000 . The price of the new sport utility vehicle is $22,000. a. If you are acting rationally, you will borrow $2,000 and purchase a new sport utility vehicle
b. You will not purchase the new sport utility vehicle at this time if you are acting rationally. c. If you do not purchase the new sport utility vehicle, your net loss will be $2,000. d. If you are acting rationally, you will purchase sport utility vehicles until the marginal cost of doing so falls to $20,000.
In the Theory of Price, George Stigler points out that a monopolist is no less desirous of profits than a competitive firm. According to Stigler, what distinguishes the monopolist from other entrepreneurs?
a. strategy b. morality c. objective d. market position e. motivation
To adjust GDP from market prices to factor cost:
a) Add indirect taxes b) Subtract subsidies c) Deduct indirect taxes and deduct subsidies d) Deduct indirect taxes and add subsidies