Consider a particular market-clearing price and quantity under a perfectly competitive equilibrium. As the demand curve at this point becomes more inelastic, the consumer surplus in the market tends to:
A) increase.
B) decrease.
C) remain the same.
D) We do not have enough information to answer this question.
A
Economics
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Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs
Indicate whether the statement is true or false
Economics
Which of the following in NOT a source of profit?
A. Innovation B. Wages C. Exercise of monopoly power D. Risk taking
Economics