If a decrease in the price of theater tickets increases the total revenue earned by the theater, this is evidence that demand is:
a. price elastic.
b. price inelastic.
c. unitary elastic.
d. perfectly inelastic.
a
You might also like to view...
The rate at which one currency can be traded for another is called the
A) terms of trade. B) exchange rate. C) transfer rate. D) coupon rate.
When a man invests in controlling weeds and trash that tend to accumulate in his yard, both he and his neighbors benefit from his action
Is an externality associated with his private decision? If so, explain its effect, and determine whether the efficient level of weed control occurs when the individual invests in weed control.
Effective collusion generally is more difficult as the number of oligopolistic firms involved increases
a. true b. false
Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in: a. real GDP
b. the price level (CPI). c. the unemployment rate. d. a and b, but not c.