Suppose that when a particular firm decreases its price its total revenue decreases. What kind of demand does this particular firm face?
A. Demand is price inelastic.
B. Demand is price elastic.
C. Demand is unit elastic.
D. Demand is perfectly price elastic.
Answer: A
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A rapid and decisive reduction in the rate of growth of the money supply for the purpose of disinflation is called
A) a salt water policy. B) a cold shower policy. C) gradualism. D) a cold turkey policy.
Which is NOT a weakness of the policy of mandatory separation of recyclables?
A) It actually pays people to use more recyclable material, and thus more material in total. B) It is costly for households in terms of time spent. C) It is costly for the government to monitor. D) Individuals may shift away from recyclable to non-recyclable materials just so they don't have to bother to separate them. E) Implementation is difficult and consumes household space.
If the Fed raises the discount rate, what happens to reserves and the money supply?
a. Reserves increase and the money supply decreases. b. Both increase. c. Reserves decrease and the money supply increases. d. Both decrease.
Which statement is true about labor unions in the United States?
A. Unions have not always been very popular. B. They did not gain widespread acceptance until the 1940s. C. The U.S. has a lower percentage of its work force unionized than most other industrial nations. D. All of the choices are true of labor unions in the U.S.