An increase in price:
A. cannot cause a quantity effect.
B. cannot cause a price effect.
C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price.
D. causes an increase in quantity demanded.
C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price.
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Refer to the scenario above. Which of the following statements is true of the demand curve that the monopolist faces in the price range of $6 to $10?
A) The demand curve is elastic in the price range. B) The demand curve is inelastic in the price range. C) The demand curve is vertical in the price range. D) The demand curve is upward sloping in the price range.
Women in the workplace seem to be narrowing the wage gap with males. What might be the cause of this shift during the past 25 years?
When the parties to a deal have access to different information:
A. markets may fail to exist in such cases. B. parties will voluntarily share information truthfully in order to achieve efficiency. C. markets will be efficient. D. parties will blindly trust one another.
The "official measure" of the deficit (the one reported by the government)
A) tells us the change in government nominal debt. B) is equal to nominal interest payments on the debt plus the primary deficit. C) overestimates the real budget deficit whenever the inflation rate is positive. D) all of the above E) none of the above