All sellers may be tempted to raise the price of what they sell, but a negative unintended effect of raising the price could be __________ in units sold large enough to __________ the seller's total revenue earned
A) an increase; raise
B) an increase; lower
C) a decrease; raise
D) a decrease; lower
D
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Which of the following statements about third-degree price discrimination is correct?
A. Successful third-degree price discrimination will generally result in a greater level of output than would be the case under a single-price pure monopoly. B. Successful third-degree price discrimination does not require that different groups of consumers have different demand elasticities. C. Successful third-degree price discrimination does not require that the producer separates customers into easily identifiable groups. D. Successful third-degree price discrimination will not provide the firm with more total profits than if it does discriminate.
The presence of efficiency, minimum and union wages
A) can explain job rationing because they lower the real wage rate below equilibrium. B) does not affect job rationing because they affect only the amount of job search. C) can explain job rationing because they raise the real wage rate above equilibrium. D) can explain job rationing because they lower the natural unemployment rate. E) cannot explain job rationing because they are a natural part of the economy.
Which of the following concepts cannot be illustrated by the production possibilities frontier?
a. efficiency b. opportunity cost c. equality d. trade-offs
Refer to Figure 26-5. Starting at point A, a change in tax laws that encouraged households to save more would likely cause
a. the quantity of loanable funds traded to increase to $125 and the interest rate fall to 5% (point D). b. the quantity of loanable funds traded to increase to $125 and the interest rate to rise to 7% (point C). c. the quantity of loanable funds traded to decrease to $75 and the interest rate to fall to 5% (point B). d. the quantity of loanable funds traded to decrease to $75 and the interest rate to rise to 7% (point E).