Refer to the information provided in Figure 5.4 below to answer the question(s) that follow.
Figure 5.4Refer to Figure 5.4. The demand for milkshakes is unit elastic at Point C. If the milkshake price falls from P1 to P2, total revenue will
A. decrease.
B. remain constant.
C. either increase or decrease.
D. increase.
Answer: D
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The public sector of the U.S. economy includes:
a. the federal, state, and local government. b. multinational corporations and the federal government. c. the Federal Reserve bank of the U.S. d. the judiciary and the federal government. e. households.
If foreign firms send profits back to their industrial countries from the developing countries, developing countries will have a larger deficit on their balance of payments accounts
a. True b. False Indicate whether the statement is true or false
When the average physical product is rising
A) total cost is falling. B) average total cost is increasing. C) average variable cost is falling. D) marginal cost is always rising.
Which of the following is one of the functions of rental prices?
A. to ration the use of existing housing for current consumers B. to signal to the local government when taxes on rental units should be increased C. to redistribute income from renters to landlords D. to redistribute income from landlords to renters