If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000 . then:
a. the demand for Pete's muffins in this range is price elastic.
b. the demand for Pete's muffins in this range is price inelastic.
c. the demand for Pete's muffins in this range is unit elastic.
d. the percentage change in quantity demanded must exceed the percentage change in product price.
e. this is impossible since this would violate the law of demand.
b
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In the mid 1980s, the massive current account deficits were related to massive U.S. government budget deficits
Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)
A firm that is a price taker can:
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