Given the information in Scenario 4.3, suppose that the price of erasers increases slightly from $10. How will this affect the total revenue collected by the firm?
A) Total revenue will increase.
B) Total revenue will not change.
C) Total revenue will decrease.
D) There will be an indeterminate change in total revenue.
A
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According to the circular flow model, ________.
A. net investment must equal gross investment B. income must equal expenditures C. exports must equal imports D. saving must equal investment
Refer to Figure 8A.1. Suppose that the economy starts with a capital stock of K0. Then total saving is given by point ________ and depreciation by point ________
A) c; d B) b; a C) d; c D) a; b
John’s Bait Shop was surprised to learn that when it raised prices by 10 percent, total revenue was unaffected. This is because the elasticity for bait is
A. unit elastic. B. inelastic. C. elastic. D. Not enough information is given.
Kariuki decreases his consumption of grapes after his income goes up. For Kariuki
A) grapes and income are substitute goods. B) grapes and income are complementary goods. C) grapes are an inferior good. D) grapes are a superior good.