The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?
A) The total revenue will increase.
B) The total revenue will decrease.
C) The total revenue will not change.
D) There is not enough information to determine what happens to the total revenue.
B
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Macroeconomic issues include all of the following EXCEPT:
A. regulation of natural monopolies B. economic interdependence among nations C. economic growth and living standards D. inflation
Households will choose to save more if
A) income is expected to decrease in the future. B) current disposable income increases. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
The quantity of a good demanded tends to increase as its price falls because: a. a decrease in price shifts the demand curve to the right
b. a decrease in price shifts the demand curve to the left. c. a decrease in price shifts the supply curve to the right. d. a decrease in price leads consumers to substitute toward this now relatively cheaper product.
Firms that spend a large amount of money on advertising a particular product are likely to be providing consumers with
a. information about the availability of the product. b. information about product price. c. a signal of product quality. d. a good example of wasted resources.