Along the elastic range of a demand curve, a price change causes:
A. a change in total revenue in the opposite direction.
B. a change in total revenue in the same direction.
C. no change in total revenue.
D. an unpredictable change in the total revenue.
Answer: A
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To an economist, theory can be thought of as
A. abstraction for the sake of argument. B. one person’s opinion, which is just as good as another’s. C. another term for the description of a situation. D. beliefs that cannot necessarily be verified. E. explanation of mechanisms behind observed phenomena.
The figure above shows the labor market in a region. If a minimum wage of $8 an hour is imposed, then there are ________ unemployed workers
A) 20,000 B) 40,000 C) 60,000 D) 80,000 E) zero
The definition of a model is a:
a. description of all variables affecting a situation. b. positive analysis of all variables affecting an event. c. simplified description of reality to understand and predict an economic event. d. data adjusted for rational action.
If real GDP increased by 2% and nominal GDP increased by 2%, then output: a. increased and the price level increased
b. increased and the price level decreased. c. increased and the price level remained unchanged. d. remained unchanged and the price level increased.