Related to the Economics in Practice on page 102: Frank runs a corner delicatessen and one day decides to raise his prices by 10 percent. Total revenue is likely to ________ at the end of the first month of the higher prices since demand is relatively elastic in the ________ term.
A. rise; short
B. rise; long
C. fall; long
D. fall; short
Answer: C
You might also like to view...
If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units, the slope of the function is
A. 5 B. ?.5. C. ?2. D. ?72.
In the textbook, economics is defined as the science of
A) money and business. B) choices. C) scarcity. D) price. E) individuals' actions.
Consumer surplus in a market for a product would be equal to ________ if the market price was zero
A) zero
B) the area under the demand curve
C) the area between the supply curve and the demand curve
D) the area above the supply curve
Which of the following is NOT a characteristic of monopolistic competition?
A) large number of sellers B) sales promotion and advertising C) homogeneous product D) easy entry of new firms in the long run