When the own price elasticity of good X is ?3.5, then total revenue can be increased by:
A. decreasing the quantity supplied.
B. decreasing the price.
C. increasing the price.
D. neither increasing the price, decreasing the price, nor decreasing the quantity supplied.
Answer: B
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A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420If the baker uses all of its resources to produce only cupcakes, then its production combination will be
A. F. B. A. C. B. D. E.
Why do most economists believe that the Laffer argument does NOT apply to broad-based taxes?
What will be an ideal response?
Which of the following is a true statement about equilibrium in the foreign exchange market?
A) Net exports are zero. B) The expected return on domestic assets is equal to the expected return on foreign assets. C) Foreigners wish to purchase the entire supply of domestic assets. D) The relevant central banks meet regularly to choose the equilibrium exchange rate.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.