You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
A. Mary is correct if the demand for tickets is price inelastic.
B. Mary is incorrect if the demand for tickets is price inelastic.
C. Mary is correct. The increase in ticket prices will always increase revenue.
D. Mary is incorrect. The increase in ticket prices will never increase revenue.
Answer: A
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Who or what is responsible for bringing together scarce resources to produce most of the goods and services in the U.S.?
A) the U.S. government B) the United Nations C) the Federal Reserve Bank D) markets and prices
The original Phillips curve depicted an inverse relationship between wage inflation and unemployment
Indicate whether the statement is true or false
If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real wage will:
A. be unaffected. B. rise by 4 percent. C. fall by 4 percent. D. rise by 8 percent.
As demand for phone apps increases, other things being equal, we can expect
A) a decrease in both the relative price and quantity of phone apps. B) a decrease in the supply of phone apps. C) more phone apps to be produced. D) an excess number of phone apps in the market.