The price elasticity for beef is -0.5. If price for beef in the market increases (by a small amount), beef producers can expect their total value of sales (total revenue) to:
a. increase
b. decrease
c. stay the same
d. can't tell from the available information
a. increase
You might also like to view...
From 1970 to 2010, as a fraction of GDP, the quantity of money that people and businesses have held has been
A) independent of people's use of credit cards. B) increasing. C) decreasing. D) fluctuating erratically. E) changing only as the interest rate changed.
The merger of two daily New York City newspapers would be an example of a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
Consider the straight-line demand curve illustrated in the above figure. At what price is total revenue maximized?
A) at a price of $8 B) at a price of $6 C) at a price of $4 D) More information is needed to determine the price at which total revenue is maximized.
To maximize its profit, a monopolistically competitive firm produces at the output level at which
a. its price elasticity of demand equals one. b. MR = MC. c. its D curve is tangent to its ATC curve. d. MR = AVC.