The demand for oil is inelastic. So, does an increase in the price of oil mean an increase in total revenue or a decrease in total revenue for oil producers?
What will be an ideal response?
Because the demand is inelastic, an increase in price increases the total revenue of the oil producers.
Economics
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Suppose that in 2015 a country has a population of 1 million and real GDP of $1 billion. In 2016, the population is 1.1 million and the real GDP is $1.1 billion. The real GDP per person growth rate is
A) $1000. B) positive. C) negative. D) zero.
Economics
Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete the sentence?
a. Only II b. All except III c. I and II, but not III and IV d. I and IV, but not II and III
Economics