The demand for science fiction novels is elastic. When prices decrease from $10 to $6.50 per novel, total revenue will
a. not change.
b. decrease.
c. increase.
d. either increase or stay the same.
c. increase.
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The difference between the monetarist and Keynesian views on discretionary monetary policy is that the monetarists
a. believe monetary policy is a stabilizing force and Keynesians believe it is primarily destabilizing. b. Keynesians think that monetary policy is always used effectively. c. believe monetary policy is a destabilizing force and Keynesians believe it is potentially stabilizing. d. favor "fine tuning" the economy by use of monetary policy while the Keynesians do not.
Competing broadcasting networks are motivated to choose socially optimal programs
Indicate whether the statement is true or false
Which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?
A. Prices are above marginal costs in the long run. B. Long-run profits are zero. C. Prices are equal to marginal costs in the long run. D. Firms produce homogeneous goods.
Sharply rising oil prices are most likely to lead to a
A. Negative demand shock B. Positive demand shock C. Negative supply shock D. Positive supply shock