A firm raises the price it charges. The firm's total revenue does not change. What can we conclude about the price elasticity of demand?
A) Demand is elastic.
B) Demand is unit elastic.
C) Demand is inelastic.
D) Demand is perfectly elastic.
E) Not enough information is given to conclude anything about price elasticity of demand.
B
You might also like to view...
The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. A Nash equilibrium is that
A) firm A selects a high advertising budget and firm B selects a low advertising budget. B) firm A selects a low advertising budget and firm B selects a high advertising budget. C) both firms select a high advertising budget. D) both firms select a low advertising budget.
Which of the following causes a shift from E3 to E4?
a. price increase in the long run
b. price increase in the short run
c. price decrease in the long run
d. price decrease in the short run
Answer the following statement(s) true (T) or false (F)
1. A monopoly exists when there are no barriers to entry into a market. 2. Pure monopoly is rare. 3. In a natural monopoly, goods are most efficiently produced by one large firm. 4. Alcoa had a monopoly on aluminum because it controlled an important harbor. 5. Monopolists are price takers.
One of the provisions of the Temporary Assistance for Needy Families (TANF) program was to:
A. Guarantee cash assistance for poor families B. Set a 5-year lifelong limit on welfare benefits C. Get the Federal government to pay more of the cost of welfare D. Make welfare benefits more equitable among those receiving them