Suppose researchers at the University of Wisconsin discover a new vitamin that increases the milk production of dairy cows. If the demand for milk is relatively inelastic, the discovery will
a. raise both price and total revenues.
b. lower both price and total revenues.
c. raise price and lower total revenues.
d. lower price and raise total revenues.
b
Economics
You might also like to view...
Who will bear the burden of a $0.05 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden. B) Consumers pay $0.25 of the tax, bearing the burden. C) Sellers pay $0.20 of the tax and bear the burden. D) Sellers pay all of the tax and bear the burden.
Economics
Which of the following is not a component of aggregate demand?
A. Consumption. B. Productivity. C. Investment. D. Net exports.
Economics