If demand is inelastic, a drop in price will raise total expenditure
a. True
b. False
Indicate whether the statement is true or false
False
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The U.S. economy during the 2001-2004 period was been characterized by all of the following except
a. expansionary fiscal policy. b. expansionary monetary policy. c. a jobless recovery. d. moderate economic growth. e. none of the above
Assume that supply decreases greatly and demand decreases slightly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
Renters of rent-controlled apartments will likely benefit from both lower rents and higher quality of apartments
a. True b. False Indicate whether the statement is true or false
The portion that households spend of each additional dollar they receive is called the
A. marginal after-tax income. B. after-tax incentive. C. natural tendency to consume. D. marginal propensity to consume.