A decrease in total revenue will result if
A) demand is inelastic and price increases.
B) demand is elastic and price decreases.
C) demand is inelastic and price decreases.
D) demand is unitary elastic and price decreases.
Answer: C
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When the price of a pound of apples is $1.00, 7500 pounds of apples are demanded. When the price of a pound of apples decreases to $0.80, 10,000 pounds of apples are demanded. In this price range the demand for apples is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
Which of the following characterizes an oligopolistic industry?
a. Few firms and standardized products b. Few firms and differentiated products c. Few firms and wither standardized or differentiated products d. A large number of competing firms
Firms in perfectly competitive markets take the ______ as given when deciding how much to sell.
A. market quantity B. lowest prices C. market prices D. input prices
If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between whatever a family earned and $25,000 . which of the following is correct?
a. The government is effectively taxing every dollar earned up to $25,000 at a rate of 100%. b. This program would reduce the incentive to work to earn any wage up to $25,000. c. If workers are discouraged from working due to this program, they will miss any on-the-job training that would have otherwise occurred, limiting their ability to improve their skills. d. All of the above are correct.