An art museum raises its admission price, and ends up with a decrease in its total revenue. How could you explain this situation to the museum director?
What will be an ideal response?
If price goes up, quantity demanded will fall. If total revenue fell, this must mean that the percentage decrease in quantity demanded was larger than the percentage increase in price. Therefore, the demand for museum admission must be elastic.
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In which of the following countries do elective medical procedures generally receive lower priority, often resulting in longer waiting times than are common under more privately-funded systems?
A) Japan and the United States B) Japan and Canada C) Canada and the United Kingdom D) the United Kingdom and the United States
Gross domestic product measures the ________ value of ________ goods and services produced during a ________ time period
A) inherent; market; fixed B) final; intermediate; stable C) intermediate; final; constant D) market; final; given