If demand is price inelastic and the price is lowered, which of the following occurs?
A) The quantity sold decreases.
B) The total expenditure increases and the total revenue decreases.
C) The total revenue of the firms selling the product is unchanged.
D) The total revenue of the firms selling the product decreases.
E) The total expenditure decreases and the total revenue increases.
D
You might also like to view...
The corporate income tax is ultimately paid by all of the following except
A) owners of the corporation. B) the corporation's debtors in the form of lower rates of return on the corporation's bonds. C) employees in the form of lower wages. D) customers in the form of higher prices.
A shift in tastes toward foreign goods ________ net exports in the U.S. and causes the IS curve to shift to the ________ in the U.S., everything else held constant
A) decreases; right B) decreases; left C) increases; right D) increases; left