If the demand for a good is unit elastic
A) a 5 percent increase in price results in a 5 percent increase in total revenue.
B) a 5 percent increase in price results in a 5 percent decrease in total revenue.
C) a 5 percent increase in price does not change total revenue.
D) the demand curve is a straight line with slope of -1.
C
Economics
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Refer to Figure 11.5. An increase in the marginal propensity to import is best illustrated by diagram
A) A. B) B. C) C. D) D.
Economics
What is the best response of firm B, given firm A is charging a low price?
a. Charge a low price b. Charge a high price c. Charge zero, give the good away d. All of the above
Economics