A physician's office expenses increase 10 percent, so she decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue stay the same if demand is elastic.
b. Office visits and total revenue rise if demand is inelastic.
c. Office visits and total revenue fall if demand is inelastic.
d. Office visits will fall and total revenue will rise if demand is inelastic.
e. Office visits will rise and total revenue will fall if demand is elastic.
D
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The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
Refer to the figure above. If A imposes a per unit tariff of $10 on imports from both B and C, it will import
A) 400 units from B. B) 200 units from C. C) 200 units from each. D) 400 units from B and 200 units from C.
Which of the following would be considered a variable input in the short run? a. The size of a firm's plant
b. The acreage of an apple farmer's orchard. c. The production capacity of a machine. d. None of the above.
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
A) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely. B) even when market participants care only about their own self interests rather than about the overall efficiency of resource use. C) only if buyers and sellers really care, personally, about economic efficiency. D) even if business firms fail to produce goods efficiently.