If the demand function for city bus rides is P = 100 - 10Q and the present price of a ride is 50, then
A. raising prices will increase city revenue.
B. raising prices will decrease city revenue.
C. from the information given it is not clear what would happen to city revenue if price is increased.
D. raising prices will not change city revenue.
Answer: B
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Which of the following is not a characteristic of a perfectly competitive market?
a. There is a large number of small firms. b. Firms sell a homogeneous product. c. Firms can easily enter or exit the market. d. Firms are price makers, not price takers.
What is an important advantage of a free market?
a) it does not change unless the government directs it b) it offers a wide variaty of goods and services c) it is easy to regulate d) it protects the less fortunate
When deriving the aggregate demand (AD) curve from the aggregate expenditures model, an increase in U.S. product prices would cause an increase in:
A. the value of household wealth and lower consumption expenditures. B. interest rates and lower investment expenditures. C. exports and imports. D. U.S. resource prices and an increase in aggregate supply.
Replacing employment-based health care with a government-run system could reduce employers payments for their workers insurance, but the amount that they would have to pay in overall compensation
A) would remain essentially unchanged. B) would dramatically increase. C) would fall to zero. D) would dramatically decrease.