If the price of a good increases and the total revenue also increases, the good has a(n)
A) elastic demand.
B) inelastic demand.
C) unit elastic demand.
D) perfectly elastic demand.
B
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Existing computer software
a. is a public good b. is excludable but nonrivalrous c. is rivalrous by not excludable d. should be provided free of charge e. has been produced efficiently
The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.
Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a free-trade area with Chile. How much will the U.S. government tariff revenue change (as a result of joining the free trade area)?
A. Increase by $50 million B. Decrease by $300 million C. Decrease by $800 million D. Increase by $600 million