When demand is perfectly inelastic, an increase in price will
A) leave total revenue unchanged.
B) increase total revenue.
C) decrease total revenue.
D) either increase total revenue or decrease total revenue, but it is impossible to tell which.
Answer: B
Economics
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During a recession, the average duration of unemployment tends to
A) be unpredictable. B) be about the same as during an expansion. C) decrease. D) increase. E) remain constant.
Economics
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Living with this risk gives Bob the same expected utility as if there was no chance of theft and his wealth was
A) $0. B) $20. C) $30. D) $50.
Economics