Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is ?. What happens to sales revenue if the restaurant increases its price by 5 percent?
A) Sales revenue falls by 100 percent.
B) Sales revenue falls by less than 5 percent.
C) Sales revenue remains unchanged.
D) It cannot be determined without information on prices.
A
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If the amount of money received by the government from various sources exceeds the federal budget, the government resorts to deficit financing
a. True b. False Indicate whether the statement is true or false
Economic growth can be pictured in a production possibilities curve diagram by
A) making the production possibilities curve more bowed out. B) making the production possibilities curve less bowed out. C) shifting the production possibilities curve out. D) shifting the production possibilities curve in.
In the Keynesian model in the long run, a decrease in the money supply will cause ________ in the real interest rate and ________ in the price level.
A. no change; an increase B. a decrease; a decrease C. no change; a decrease D. an increase; an increase
Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium quantity is:
A) 2 units. B) 3 units. C) 4 units. D) 5 units.