Given a demand curve, explain how total revenue may be calculated
A demand curve consists of the prices and corresponding quantities demanded at those prices. Total revenue is price times quantity demanded. Therefore, total revenue is the area of a rectangle formed under the demand curve by the choice of any price-quantity combination.
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A lender need not be penalized by inflation if the
A. short-term rate of inflation is less than the long-term rate of inflation. B. long-term rate of inflation is less than the short-term rate of inflation. C. lender correctly anticipates inflation and increases the nominal interest rate accordingly. D. inflation is unanticipated by both borrower and lender.
The passage of the ________ in 1930 sparked a trade war that caused net exports to decrease and real GDP to decrease
A) Sherman Antitrust Act B) Clayton Act C) Smoot-Hawley Tariff D) Cellar-Kefauver Act
If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption, then the good likely has too many resources devoted to its production
a. True b. False Indicate whether the statement is true or false
If prices in the economy rise, then
A) the purchasing power of a dollar rises. B) the purchasing power of a dollar stays constant. C) the purchasing power of a dollar declines. D) the purchasing power of a dollar cannot be determined.