When Taylor raised the price of earrings at Taylor's Boutique, her total revenue from selling earrings increased. This suggests that:
A. there are many other boutiques competing with Taylor.
B. the demand for Taylor's earrings at the original price was elastic.
C. there was excess demand for earrings at the original price.
D. the demand for Taylor's earrings at the original price was inelastic.
Answer: D
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A tradable emissions permit program is efficient because the cap protects the environment while: a. generating substantial revenues for the government
b. keeping compliance and administration costs relatively low. c. while requiring the same response by each polluter. d. none of above
Which of the following does not represent a tradeoff facing a consumer?
a. choosing to purchase more of all goods b. choosing to spend more time on leisure and less time on work c. choosing to spend more now and consume less in the future d. choosing to purchase less of one good in order to purchase more of another good
Which statement is true?
A. The United States has a larger national output than any other country in the world. B. We have had recessions about every three years since World War II. C. There were no recessions while Ronald Reagan was president. D. None of the statements are true.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.