Consider the segment of a demand curve along which all price elasticities of demand are less than 1 . A decrease in price anywhere along that segment
a. shifts that segment of the demand curve to the right
b. increases total revenue
c. decreases total revenue
d. shifts that segment of the demand curve to the left
e. raises the price elasticity of demand
C
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Which of the following does the production possibilities curve illustrate?
a. The tradeoffs facing a society b. The fact that more of one product can be produced only by reducing the quantity of other products that are being produced, assuming that resources are being used efficiently c. The maximum output that can be produced with a limited amount of resources d. The opportunity cost of alternative choices e. All of these
Why do negative supply shocks present such a difficulty for the Federal Reserve?
a. the Fed can choose to fight the rising price level, but this will result in lower unemployment. b. the Fed can choose to fight the rising unemployment, but this will result in an even lower price level. c. the Fed can choose to fight the falling unemployment, but this will result in an even higher price level. d. the Fed can choose to fight the rising unemployment, but this will result in an even higher price level. e. the Fed can choose to fight the rising unemployment, but this will result in higher taxes.
Wants are unlimited and
a. constant b. free c. never fulfilled d. ever changing
Exhibit 12-3 Lorenz curve for an economy
If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:
A. move closer to the 45° line. B. become more bowed outward. C. lie above the 45° line. D. shift down and to the right.