As you move up along a straight-line demand curve,
A) the price elasticity of demand decreases in size.
B) the price elasticity of demand increases in size.
C) total revenue always decreases.
D) total revenue always increases.
E) total revenue never changes.
B
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A tax system in which the average and marginal tax rates are the same for every level of taxable income and every change in income is an example of
A) regressive taxation. B) proportional taxation. C) progressive taxation. D) premium taxation.
Which of the following would NOT provide an incentive to reduce the amount of beef consumed?
A) an increase in the price of beef B) a subsidy to buyers of beef C) a decrease in the price of chicken D) a ban on beef sales by the Food and Drug Administration
If domestic income falls, what must happen to keep the trade balance the same?
a. The real exchange rate must fall. b. Foreign income must rise. c. The domestic price level must fall. d. Domestic income must fall.
Describe the shape of the typical production possibilities curve and explain why it has this shape.
What will be an ideal response?