If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A) perfectly inelastic.
B) relatively inelastic.
C) perfectly elastic.
D) relatively elastic.
Answer: D
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For each one dollar increase in real GDP, aggregate planned expenditure
A) increases by less than a dollar. B) increases only if autonomous expenditure increases. C) increases by one dollar. D) increases by more than a dollar. E) is unaffected.
Which is NOT true about the use of economic models?
A) Economic models are simplified representations of the real world. B) Economists always use experiments in science laboratories to test their theories. C) Economists use what has already happened in the real world to test their theories. D) Economists are employed to explain economic phenomena but are never used to predict what might happen next.
A positive economic statement is:
a. an opinion of an action that should be taken. b. an action that will have a positive effect on the economy. c. a statement testable by facts. d. a claim that the speaker is positive will occur. e. always a microeconomic position.
Jack and Jill have identical skills and training, but Jill earns higher wages in her job. Which of the following reasons would best explain why Jill earns more than Jack?
A. Jack has a chronic illness and would lose health care coverage if he changed jobs. B. Jill suffers from gender discrimination in the workplace. C. Jack has better access to information about available jobs in his field. D. Jill is reluctant to move to a new city because she wants to live near family.