Larger is always better

Refer to the graph below. The movement from point 1 to point 2 is stimulated by a disequilibrium in which there is domestic ________ and ________

A) overemployment; trade surplus B) unemployment; trade surplus C) overemployment; trade deficit D) unemployment; trade deficit E) inflation; unemployment

Along a linear demand curve, total revenue is maximized when demand is

a. elastic b. inelastic c. unit elastic d. perfectly elastic e. perfectly inelastic