Which combination of factors would lead to large price and total revenue changes?
A) inelastic demand for a product and large swings in supply
B) elastic demand for a product and small swings in supply
C) inelastic demand for a product and constant supply
D) a and c
E) none of the above
A
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If net exports increases, but neither government expenditure nor net taxes change, saving must increase
Indicate whether the statement is true or false
Table 8-1 Item Amount (billions) Personal Consumption Expenditures 600 Depreciation 50 Wages 800 Indirect Business Taxes 10 Rental Income 25 Gross Private Domestic Investment 150 Corporate Profits 75 Net Exports 5 Government Purchases of Goods and Services 200 Government Transfer Payments 50 According to the data in Table 8-1, the value of GDP is
A. 800 B. 805 C. 955 D. 1,055
If the capital-labor ratio is above the Golden Rule capital-labor ratio, then in the steady state,
A. capital per worker is above its maximum. B. output per worker is less than it would be at the Golden Rule capital-labor ratio. C. consumption per worker is not at its maximum. D. investment per worker exceeds output per worker.
An increase in demand for a good means that people will buy more of the good at
A. least one price. B. at some prices. C. at most prices. D. at all prices.