Suppose that the elasticity of demand for a product is 0.5. What will happen to total revenue as a firm increases the price?
A. Total revenue will increase.
B. Total revenue will decrease.
C. Total revenue will stay the same.
D. It cannot be determined from the information provided.
Answer: A
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In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases
A) the curve will shift rightward. B) the curve will shift leftward. C) there is a movement along the curve. D) the curve will be unaffected.
Specialization of labor means that: a. production requires a special kind of labor
b. the overall skill level of labor is increasing. c. individuals produce goods other than those they want to consume. d. individuals achieve self-sufficiency in production. e. exchange within an economy consists of trading in services.
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. Which of the following output-combinations is unattainable:
A. 1 steel and 80 wheat
B. 4 steel and 55 wheat
C. 30 wheat and 3 steel
D. 95 wheat and 0 steel
All of the following are characteristics of a perfectly competitive industry EXCEPT
A. firms in the industry are price takers. B. there are a large number of buyers and sellers with only a few being able to influence the market price. C. the product sold is homogeneous. D. buyers and sellers have equal access to information.