If the short run elasticity of demand for widgets is 1.1 and the long run elasticity of demand for widgets is 3.6, an increase 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
You might also like to view...
Everything else equal, if the dollar appreciates against the peso:
A) U.S. will export more to Mexico and will import less from Mexico. B) U.S. exports to Mexico and imports from Mexico will decrease. C) U.S. exports to Mexico and imports from Mexico will increase. D) U.S. will import more from Mexico and will export less to Mexico.
Bank ________ is/are listed on the liability side of the bank's balance sheet
A) reserves B) capital C) securities D) cash items
In perfect competition, if firms enter the market in the long run
A) total supply will increase causing market price to increase. B) total supply will decrease causing market price to decrease. C) total supply will decrease causing market price to increase. D) total supply will increase causing market price to decrease.
Critics argue that firms use advertising to develop consumer preferences
a. True b. False Indicate whether the statement is true or false