Explain the relationship between price elasticity of demand and total revenue
What will be an ideal response?
If demand is elastic, an increase in price reduces total revenue, and a decrease in price increases total revenue.
If demand is inelastic, an increase in price increases total revenue, and a decrease in price decreases total revenue.
If demand is unit elastic, a change in price (either up or down) does not affect total revenue.
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A) store of value. B) double coincidence of wants. C) unit of account. D) medium of exchange.
Which of the following is a test of nonnested models??
A. ?Davidson-MacKinnon test B. ?Standard F test C. ?Regression Specification Error Test D. Whitetest
Each president of a Reserve Bank serves for a:
A. two-year renewable term. B. fourteen-year term. C. seven-year term. D. five-year term.
Which of the following is NOT an example of an international public good?
A) Capital flows to less-developed countries B) Last-resort lending C) Open markets during a recession D) Regional trade agreements