If the short run elasticity of demand for widgets is 0.4 and the long run elasticity of demand for widgets is 0.95, a decrease in price will ____ total revenue in the short run and ____ total revenue in the long run.
a. Increase; increase
b. Increase; decrease.
c. Decrease; increase.
d. Decrease; decrease.
d
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Deflation refers to
A) a falling price level. B) a decrease in the rate of inflation. C) Both A and B are correct. D) None of the above is correct.
When there is a negative externality, the competitive output is greater than the economically efficient output level
Indicate whether the statement is true or false
If the price of jelly (a complement with peanut butter) decreases, both the demand and supply curves of peanut butter will shift rightward
a. True b. False
If the local slaughterhouse gives off an unpleasant stench, then the equilibrium quantity of meat will be ________ the quantity that maximizes total economic surplus.
A. higher than B. lower than C. equal to D. more equitable