Consider the market for bicycles. If a dealer cuts prices by 10 percent and sells 20 percent more bikes, then demand for bicycles is
a. inelastic, and total revenue will increase
b. elastic, and total revenue will increase
c. inelastic, and total revenue will decrease
d. elastic, and total revenue will decrease
e. unit elastic, and total revenue will remain the same
B
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To an economist, theory can be thought of as
A. abstraction for the sake of argument. B. one person’s opinion, which is just as good as another’s. C. another term for the description of a situation. D. beliefs that cannot necessarily be verified. E. explanation of mechanisms behind observed phenomena.
There are many policies that can discipline market power, but often the most powerful discipline comes from potential consumers. ?
Answer the following statement true (T) or false (F)
Land sale booms were caused by large waves of immigration
Indicate whether the statement is true or false
Suppose that in 2011 nominal GDP increased and real GDP decreased relative to the year 2010 . It can be concluded that:
a. the economy experienced inflation and the total production of goods and services increased. b. the economy experienced deflation and the total production of goods and services increased. c. the economy experienced inflation and the total production of goods and services decreased. d. the economy experienced deflation and the total production of goods and services decreased.