Suppose you owned a kiosk where you sold T-shirts to other students and that after conducting a quicksurbey you find that at the current price the price elasticity of demand for your T-shirts is inelastic. Knowing this, if you wanted to increase the total revenue from selling T-shirts you should:
a. increase the price
b. decrease the price
c. leave the price where it is
d. give away T-shirts
e. none of the above
Ans: a. increase the price
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Refer to Monopoly Problem. This monopoly will charge
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. $20 b. $25 c. $30 d. $35
Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase taxes. B) raise interest rates. C) increase oil prices. D) increase the money supply and decrease the interest rate. E) increase government spending.
In the long run, any firm may enter or leave a perfectly competitive market.
Answer the following statement true (T) or false (F)
In this table, if the quantity increased to 7, what would the total revenue be?
a. 27
b. 30
c. 32
d. 35