Dusty Rags, Inc provides janitorial services to retail stores. Dusty had been charging $10 per hour and selling 400 hours of service per week at that rate. When he raised his price to $15 per hour, his customers cut back to 300 weekly hours of service. Which of the following is true?
a. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand curve for his services must have shifted to the right.
b. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be elastic.
c. Revenue went from $4,000 per week to $4,500 per week, indicating that the demand for his services must be inelastic.
d. Revenue went from $400 to $300 per week, indicating that demand must be elastic.
e. Revenue went from $10 to $15 per week, indicating that demand must be inelastic.
C
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The long-run aggregate supply curve shows the
A) maximum GDP the nation will ever produce. B) full-employment level of real GDP. C) level of real GDP associated with a constant price level. D) level of output at which real GDP equals nominal GDP.
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ growth rate of output
A) leads to a higher B) leads to a lower C) has no long-run effect on the D) has an ambiguous effect on the