Demand is said to be inelastic when:
A. An increase in price results in a reduction in total revenue
B. A reduction in price results in an increase in total revenue
C. A reduction in price results in a decrease in total revenue
D. The elasticity coefficient exceeds one
C. A reduction in price results in a decrease in total revenue
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A curve that shows the various combinations of goods and services that are possible for an economy to produce with a given amount of resources is referred to as a(n):
A) supply curve. B) isocost curve. C) budget constraint. D) production possibilities curve.
Mary takes 4 minutes to make a sandwich and 6 minutes to mix a cocktail. Her sister Ash takes 4 minutes to make a sandwich and 4 minutes to mix a cocktail. Calculate each sister's opportunity cost
Which of the two sisters has an absolute advantage in making sandwiches? In mixing cocktails? Which of the two has a comparative advantage in making sandwiches? In mixing cocktails?
Classical economists think that the government ________ use fiscal policy to dampen the business cycle because prices and wages adjust ________
A) should not; rapidly B) should not; slowly C) should; slowly D) should; rapidly
An oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:
A. increase total revenue by increasing price but lower total revenue by decreasing price. B. decrease total revenue by either increasing or decreasing price. C. increase total revenue by either increasing or decreasing price. D. increase total revenue by decreasing price but lower total revenue by increasing price.