If a decrease in price increases total revenue, what can you determine about the elasticity of demand for the good?
What will be an ideal response?
If a decrease in price increases total revenue, the demand for the good is elastic, that is, the elasticity of demand exceeds 1.00.
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In Figure 4-5 above, the money market is in equilibrium
A) at points B, C, and E. B) at points A and E. C) only at point E. D) at points E and D. E) at points A, B, E, and C.
Define monopsony
Professor Tabarrok suggests that monetary policy is both an art and a science because of the complexity of answering all of the following questions EXCEPT:
A. how to use monetary policy tools. B. where to apply monetary policy tools. C. when to use monetary policy tools. D. which monetary policy tools to use.
Two countries will choose to specialize and trade only if:
A. the terms of trade fall between their opportunity costs for producing the goods on their own. B. the opportunity costs are the same for the two nations. C. one country possesses the absolute advantage in both goods, but the comparative advantage in only one good. D. the opportunity costs are astronomically high for producing the goods on their own.