When price was 6, quantity demanded was 10. When price decreased to 5, quantity demanded increased to 13. Therefore, when price decreased, total revenue
A. decreased from 65 to 60, indicating that demand is inelastic.
B. increased from 60 to 65, indicating that demand is inelastic.
C. decreased from 65 to 60, indicating that demand is elastic.
D. increased from 60 to 65, indicating that demand is elastic.
Answer: D
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A study conducted by Robert Shiller, a Yale Economist, found that a large majority of the public thinks that increases in inflation will not quickly lead to an increase in wages
Indicate whether the statement is true or false
The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively low
A) total costs. B) marginal and average variable cost. C) external cost. D) social cost.
Economic fine-tuning is the (usually frequent) use of
A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity. B) only fiscal policy to counteract even small undesirable movements in economic activity. C) monetary and fiscal policies to counteract even small undesirable movements in economic activity. D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Suppose the economy is at Point B. What can possibly move the economy to Point E?
A. a rightward shift in the AS curve B. a rightward shift in the AD curve C. a leftward shift in the AD curve D. a leftward shift in the AS curve