When demand is elastic, if we were to raise price, total revenue would ______; when demand is inelastic, if we were to raise price, total revenue would _______.
Fill in the blank(s) with the appropriate word(s).
fall; rise
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Potential GDP is always greater than real GDP in an economy
Indicate whether the statement is true or false
If the percentage change in quantity demanded is greater than the percentage change in price, we would say that over this range, demand is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.
Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a decrease in the growth rate of productivity will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss solely due to the tax is
A) $88. B) $152. C) $361. D) $441.