In case of a decrease in product prices:
A) the quantity effect always dominates the price effect.
B) the price effect always dominates the quantity effect.
C) when the price effect dominates the quantity effect, total revenue increases.
D) when the quantity effect dominates the price effect, total revenue increases.
D
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Answer the following statements true (T) or false (F)
1. National income accountants eliminate double counting of intermediate goods by using only the value of final goods. 2. Current disposable income can be adjusted for price changes and population changes to yield real per capita disposable income. 3. A transfer payment is a payment of money in return for which no current goods or services are produced. 4. The value of leisure is not taken into consideration in GDP accounting. 5. When final sales are less than GDP, a net reduction in inventory has taken place.
Catherine's demand for fish takes the conventional form of a downward-sloping demand curve. When the price of fish falls, her consumer surplus
a. increases b. decreases c. remains unchanged because the demand curve didn't change d. remains unchanged because the quantity demanded remains unchanged e. decreases only if price elasticity of demand is greater than one
What are indivisible inputs and what are their implications for economies of scale?
What will be an ideal response?
In the above figure, a surplus exists in the gasoline market when the price is
A. $2 per gallon. B. $4 per gallon. C. $1 per gallon. D. below $2 per gallon.