"If the price falls and, as a result, the total revenue decreases, demand is elastic." Is the previous assertion correct?
What will be an ideal response?
No, the assertion is incorrect. If the demand is elastic, a fall in price increases the quantity demanded enough so that total revenue increases.
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Under perfect capital mobility
a. there are no restrictions on buying financial assets, though there may be on buying factories and equipment. b. transactions costs have to be zero. c. differential risk in assets across countries are minimal. d. All of the above e. None of the above
What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?
Suppose that corn farmers want to increase their total revenue. Knowing that the demand for corn is inelastic, corn farmers should
a. plant more corn so that they would be able to sell more each year. b. increase spending on fertilizer in an attempt to produce more corn on the acres they farm. c. reduce the number of acres on which they plant corn. d. contribute to a fund that promotes technological advances in corn production.
Voluntarism includes methods for dealing with pollution that
A. carry no legal authority. B. assume the public has been made aware of the environmental damage they are responsible for. C. involve trying to coerce polluters to reduce or eliminate pollution voluntarily. D. rely on neighborhood vigilantism.