When demand is elastic, an increase in price leads to:
A. a decrease in total expenditures.
B. an undetermined change in expenditures.
C. an increase in total expenditures.
D. no change in total expenditures.
A. a decrease in total expenditures.
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Refer to the above figure. Which of the following points indicates an efficient use of resources?
A) a B) d C) e D) More information is needed to answer the question.
The short-run aggregate supply curve is horizontal when
A) prices are inflexible and the economy is at full employment. B) there are unemployed resources and prices do not increase when aggregate demand increases. C) there are unemployed resources and prices do not decrease when aggregate supply increases. D) there are no unemployed resources and prices do not increase when aggregate demand or supply increases.