Holding all other forces constant, if decreasing the price of a good leads to an increase in total revenue, then the demand for the good must be
a. unit elastic.
b. inelastic.
c. elastic.
d. None of the above is correct because a price decrease never leads to an increase in total revenue.
c
Economics
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What is meant by revenue-neutral tax reform? How might agreeing to revenue-neutral tax reform help lead to a more efficient tax system?
What will be an ideal response?
Economics
Which of the following is not true about the demand curve for labor of a competitive firm? a. As the wage rate the firm pays decreases, the quantity of labor it demands (employs) increases
b. It shows how much labor the firm is willing to employ at different wage rates. c. It is identical to the marginal revenue product curve of labor. d. The wage rate exceeds the workers' opportunity costs. e. It is downward sloping.
Economics