A 4% decline in the price of laser printers causes the quantity demanded to rise by 8%. The demand for laser printers is
A. perfectly elastic.
B. elastic.
C. unit elastic.
D. inelastic.
B. elastic.
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Which of the following statements is true about revenue?
A) Revenue is calculated by dividing the price per unit by the number of units sold. B) The terms "revenue" and "profit" can be used interchangeably. C) A firm's revenue will increase as its costs increase. D) Revenue is the total amount received for selling a good or service.
If the marginal utilities of the first 5 candy bars are 15, 14, 10, 7, and 3, respectively, the total utility derived from consuming all 5 candy bars is
a. 5 b. –12 c. 12 d. 35 e. 49
At the output level defining allocative efficiency
A. the areas of consumer and producer surplus necessarily are equal. B. consumer surplus exceeds producer surplus by the greatest amount. C. marginal benefit exceeds marginal cost by the greatest amount. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
Suppose that when a particular firm decreases its price its total revenue decreases. What kind of demand does this particular firm face?
A. Demand is price inelastic. B. Demand is price elastic. C. Demand is unit elastic. D. Demand is perfectly price elastic.