If total revenues rise when the market price increases, then we know that
A) demand is inelastic.
B) demand is elastic.
C) demand is unit-elastic.
D) its demand has zero elasticity.
Answer: A
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In order to determine personal income, what adjustments have to be made to national income?
A) subtract undistributed corporate profits, corporate income tax, social security taxes, and then add government transfers and private interest payments B) subtract undistributed corporate profits, social security taxes, government transfers, and then add private interest payments C) subtract undistributed corporate profits, corporate consumption allowance, corporate income tax, social security tax and then add government transfers and private interest payments D) subtract corporate income tax and social security taxes and then add corporate dividends, government transfers, and private interest payments
Income elasticity of demand is defined as
A) the change in quantity demanded divided by the change in income. B) the change in quantity demanded divided by the change in market price. C) the percentage change in income divided by the percentage change in quantity demanded. D) the percentage change in demand divided by the percentage change in income.