If the price rises and the total amount consumers spend on the good rises, then demand must be
A. inelastic.
B. perfectly inelastic.
C. elastic.
D. perfectly elastic.
Answer: A
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Which of the following factors can partly explain the long-term growth in production in the U.S. economy?
a. Trade surpluses and accumulation of precious metals b. A gradual but consistent increase in the price level c. Growth in population d. Improvements in technology e. Federal government budget deficits
Which of the following determines the quantity demanded of a commodity?
a. The income levels of consumers b. The price of the commodity c. The prices of related commodities d. The number of buyers e. Consumers' expectations
Which of the following is the profit-maximizing condition for a monopolist?
a. P = AR = MR = MC b. MR > MC c. P = AR > MR = MC d. MR < MC
Which of the following events would NOT cause India to shift away from exporting call center services to the United States?
A. The development of automated software that handles a large fraction of customer questions and sales orders B. An increase in the number of Chinese who speak English well C. An increase in the value of the dollar against the rupee D. An increase in the other employment opportunities available to English-speaking college graduates in India