In 1997 the price of a local telephone call from most pay phones rose from 15 cents to 25 cents. What effect do you think this will have on phone company revenues? Explain
Since a local phone call is still a low-priced good, this 67 percent increase in rates should have little effect
on the quantity of pay phone calls demanded. Total revenue from these calls should rise since demand for
them is inelastic.
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The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
An advance in technology that results in increased productivity results in a
A) rightward shift of the labor supply curve. B) rightward shift of the labor demand curve. C) rightward shift of both the labor supply and labor demand curves. D) no change to the production function.
In the above table, the total variable cost of producing 16 units of output is
A) $20. B) $60. C) $100. D) $120.
Net worth is
A) a measure of a firm's profits. B) the difference between a firm's assets and liabilities. C) part of stockholders' equity. D) listed on the asset side of a firm's balance sheet.