Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect the total revenues the restaurant earns to:
A) increase.
B) stay the same.
C) decrease.
D) cannot be determined with the information given.
C
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If the economy has an MPC of 0.8, by how much will a $50 billion increase in government purchases increase GDP? By how much will a $50 billion increase in taxes decrease GDP?
What will be an ideal response?
If the price of a good rises and the consumer's budget remains the same, what happens to the consumer's consumption possibilities?
What will be an ideal response?
A tax rate increase always leads to an increase in tax revenue for the government.
Indicate whether the statement is true or false.
When total utility is at a maximum
A) marginal utility is at a minimum. B) marginal utility is negative. C) marginal utility is zero. D) marginal utility is equal to total utility.