In Figure 5.2, at quantities at Q1,
A. price and total revenue are unrelated.
B. total revenue is maximized.
C. price elasticity equals 1.
D. All of these
Answer: D
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Which of the following is an example of government discretionary spending?
A) defense spending B) net interest paid on government debt held by the public C) Social Security retirement payments D) Medicare benefits for the elderly
A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
The United States experienced a deep recession between 2007 and 2009. Which type of unemployment would most likely increase during that period of recession?
A) cyclical unemployment B) frictional unemployment C) seasonal unemployment D) structural unemployment
Price level changes have their greatest effect on consumers'
a. income. b. wealth. c. debt. d. expectations.