When demand is relatively inelastic, a 5% increase in price will:
a. increase total revenue by more than 5%.
b. increase total revenue by less than 5%.
c. decrease total revenue by more than 5%.
d. decrease total revenue by more than 5%.
b
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When a firm has monopoly power, it
A) hires fewer workers because its marginal revenue lies below the demand curve. B) hires more workers because its marginal revenue lies below the demand curve. C) hires fewer workers because its marginal revenue lies above the demand curve. D) hires more workers because its marginal revenue lies above the demand curve.
Which of the following is not assumed constant along the U.S. demand curve for foreign exchange?
a. the exchange rate b. U.S. interest rates c. expected U.S. inflation d. expected foreign inflation e. increase in U.S. income
Innovation is the application of new technology to a production process
Indicate whether the statement is true or false
Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be
a. higher than the wages of workers with otherwise similar jobs. b. lower than the wages of workers with otherwise similar jobs. c. below market equilibrium. d. above market equilibrium.