If demand is inelastic, then price and total revenue are directly related.
Answer the following statement true (T) or false (F)
True
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An increase in the expected inflation rate causes the supply of bonds to ________ and the supply curve to shift to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
In 1910 _____________ of children between the ages of 10 and 15 had jobs, but by 1920, this percentage had fallen to ____________
a. 50 percent; 25 percent b. 30 percent; 20 percent c. 20 percent; less than 10 percent d. 10 percent; less than 1 percent
Notice the situation that results when the price of coffee is $4 a pound. Which of the following would establish equilibrium?
a. Keep the price the same; increase the quantity supplied to 8,000 pounds.
b. Decrease the price to $2; keep the quantity supplied the same.
c. Decrease the price to $3; decrease the quantity supplied to 5,000 pounds.
d. Increase the price to $5; decrease the quantity supplied to 4,000 pounds.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, what is gained by producing at point B rather than point A?
A. 15 Stealth bombers. B. 15 B-1 bombers. C. 195 Stealth bombers. D. 35 B-1 bombers.