A perfectly inelastic supply curve is
A) an upward sloping straight line that intersects the origin.
B) horizontal.
C) vertical.
D) downward sloping.
Answer: C
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An important insight of international trade theory is that when two countries engage in voluntary trade
A) one country always benefits at the expense of the other. B) it is almost always beneficial to both countries. C) it only benefits the low wage country. D) it only benefits the high wage country. E) it is almost never beneficial to both countries.
Given the information in Scenario 4.3, suppose that the price of erasers increases slightly from $10. How will this affect the total revenue collected by the firm?
A) Total revenue will increase. B) Total revenue will not change. C) Total revenue will decrease. D) There will be an indeterminate change in total revenue.