An increase in price causes:
A. a decrease in total revenue due to the price effect.
B. an increase in total revenue due to the price effect.
C. an increase in total revenue due to the quantity effect.
D. an increase in quantity demanded.
B. an increase in total revenue due to the price effect.
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Use the following figure to answer the next question. 
Total fixed cost at output level Q2 is measured by the vertical distance
A. 0C. B. DE. C. AD. D. CD.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Suppose that there are two types of cars, good and bad. The qualities of cars are not observable but are known to the sellers. Risk-neutral buyers and sellers have their own valuation of these two types of cars as follows:Types of CarsBuyer's ValuationSeller's ValuationGood (50% probability)5,0004,500Bad (50% probability)3,0002,500Suppose that both buyers and sellers observe the quality. What happens?
A. Only good cars are traded. B. Only bad cars are traded. C. Neither good nor bad cars are traded. D. Both good and bad cars are traded.
Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.
Figure 15.6Refer to Figure 15.6. If Trollio's T-shirts is producing 50 silk-screened T-shirts and selling each T-shirt at $16, then in the long run this firm should
A. continue to produce 50 silk-screened T-shirts and sell each T-shirt for $16. B. exit the industry, as it is earning a zero economic profit. C. reduce output to try to increase profits. D. increase output to 60 silk-screened T-shirts.