If demand is inelastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%.
B) then a 1% increase in price leads to a fall in quantity of less than 1%.
C) then a 1% increase in price leads to a fall in quantity of 1%.
D) then a 1% increase in price leads to a rise in quantity of less than 1%.
B
You might also like to view...
Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all the others and becomes a single-price monopoly. The figure above shows the relevant demand and cost curves
When the market is a monopoly, the price of a pound of steak is A) $4. B) $8. C) $12. D) $20. E) $2.
Which of the following macroeconomic variables is procyclical and coincident with the business cycle?
A) Residential investment B) Nominal interest rates C) Industrial production D) Unemployment
Marginal revenue is defined as
A. the change in total revenue from a unit change in price. B. the change in average revenue from a one-unit change in output. C. the change in total revenue from a one-unit change in output. D. the change total cost from a one-unit change in output.
International trade can be correctly considered as an example of a zero-sum game
a. True b. False Indicate whether the statement is true or false