If demand for a good is perfectly inelastic, then
A. a price increase would cause a fall in total revenue.
B. a price increase would cause no change in quantity demanded.
C. a price increase would cause an increase in quantity demanded.
D. a price increase would cause a fall in quantity demanded.
Answer: B
You might also like to view...
At a firm's break-even point, its
A) total revenue equals its total opportunity cost. B) marginal revenue exceeds its marginal cost. C) marginal revenue equals its average variable cost. D) marginal revenue equals its average fixed cost.
Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger decreases from $7 to $6, the price elasticity of demand equals ________, and the decrease results in a(n) ________ in total revenue.
A. -.13; decrease B. -13; increase C. -1.44; increase D. -.69; increase
Patents grant the inventor the exclusive rights to sell goods made with the invention
A. for a limited duration. B. forever. C. as long as the inventor charges what are viewed as reasonable prices. D. as long as the inventor is alive.
Refer to the graph below representing the purely competitive market for a product. When the market is at equilibrium, the producer surplus would be represented by the area:
A. b + c
B. b
C. c
D. b + c + d