Why would a bumper crop be bad news for farmers?
A. Their crop has an inelastic demand, and the resulting drop in price reduces their total revenue.
B. Their crop has an elastic demand, and the resulting drop in price reduces their total revenue.
C. Their crop has an inelastic demand, and the resulting drop in price raises their total revenue.
D. Their crop has an elastic demand, and the resulting drop in price raises their total revenue.
Answer: A
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Suppose that in a month the price of movie rentals increases from $2 to $2.20. At the same time, the quantity of movie rentals supplied increases from 100 to 110. The price elasticity of supply for movie rentals (calculated using the initial value formula) is:
A. 0.02. B. 0.2. C. 1. D. 50.
The high school graduation rate rose from 45% to 85% from 1950 to 1980, and this
A. was more than countered by an opposite trend among men so growth, was negative. B. should have been a source of growth but wasn't. C. was entirely countered by an opposite trend among men so growth, was slow. D. was a significant source of economic growth during that period.
Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry. b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price. c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers. d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.
Nancy would like to double the money in her retirement account in five years. According to the rule of 70, what rate of interest would she need to earn to attain her objective?
a. 5 percent b. 7 percent c. 10 percent d. 14 percent