If a firm wants to increase revenue, it should decrease the selling price of its product if it is currently producing in the ________ portion of its demand curve.
A. perfectly inelastic
B. inelastic
C. elastic
D. unit elastic
Answer: C
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Induced expenditure is any expenditure that
A) is fixed for all price levels. B) is fixed for all levels of real GDP. C) changes when real GDP changes. D) changes when the interest rate changes. E) is fixed for all levels of the interest rate.
According to rational expectations, expectations will only change in the event that ________
A) wealth changes B) current income changes C) permanent income changes D) unanticipated new information arises
The concept of poverty is culturally determined, and hence people are defined as “poor” in relation to others.
Answer the following statement true (T) or false (F)
If Joe says that nothing comes close to a Pepsi, his demand for Pepsi is likely to be
a. relatively price elastic b. relatively income elastic c. relatively price inelastic d. unit elastic e. infinitely elastic