Suppose the point (Q = 3,400, P = $20) is the midpoint on a certain downward-sloping, linear demand curve. Then
a. a decrease in price from $18 to $16 will increase total revenue.
b. a decrease in price from $24 to $22 will decrease total revenue.
c. a decrease in the price from $21 to $19 will decrease total revenue.
d. the maximum value of total revenue is $68,000.
d
You might also like to view...
The United States uses tax funds to build and repair the interstate highway system and to provide health care services via Medicare. Suppose Medicare services are on the horizontal axis and highway miles are on the vertical axis of a PPF
If the government decides to reduce funding to Medicare, this change would be shown as A) a shift out of the PPF. B) the PPF becoming flatter. C) a movement down along the PPF. D) a movement up along the PPF.
Which region has the highest proportion of its children working?
What will be an ideal response?