If the market price of a product falls and as a result total revenue of firms falls, we can conclude that
A. demand is inelastic in this price range.
B. the product's price is above the midpoint of its demand curve.
C. the demand curve is horizontal.
D. demand is elastic in this price range.
Answer: A
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Banks help savers find productive uses for their funds because banks are specialized in:
A. evaluating the riskiness of stocks. B. securing government guarantees for loans. C. obtaining preferential tax treatment for savers. D. gathering information about and evaluating potential borrowers.
The above table gives data for the nation of Mojo. At what level of real GDP is the unplanned inventory change equal to $1.75 trillion?
A) $12.0 trillion B) $6.0 trillion C) $9.0 trillion D) $3.0 trillion E) $0.0 trillion
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has no reason to trade with others. B. has a comparative advantage at producing that good. C. has an absolute advantage at producing that good. D. is efficient in production.