Suppose the demand for milk is relatively inelastic. What happens to sales revenue if the government imposes a price floor above the free-market equilibrium price in the market for milk?
A) Sales revenue remains unchanged.
B) Sales revenue rises.
C) Sales revenue falls.
D) It cannot be determined without information on prices.
B
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In the above figure, which point corresponds to an increase in technology?
A) Figure A B) Figure B C) Figure C D) Figure D
In Solow's exogenous growth model, the steady-state growth rate of capital can be increased by
A) higher population growth. B) higher depreciation rate. C) higher saving rate. D) higher interest rate.
If the price of hairbrushes decreases by 20 percent, the quantity demanded increases by 2 percent. The price elasticity of demand is:
A. -0.1 and is inelastic. B. 10 and is elastic. C. 10 and is inelastic. D. -0.1, and is elastic.
Perfectly competitive firms always earn economic profits in the short run.
Answer the following statement true (T) or false (F)