If price is cut and demand is elastic, total revenue will rise because
A) the change in quantity demanded is greater than the percent change in price.
B) the percent change in quantity demanded is greater than the change in price.
C) the percent change in quantity demanded is greater than the percent change in price.
D) customers can't find substitutes.
C
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In the aggregate demand and aggregate supply model, an increase in the growth rate of the velocity of money differs from an increase in money supply growth rate in that:
A. the SRAS curve will eventually shift back to its original position after an increase in money supply growth. B. the AD curve will eventually shift back to its original position after an increase in velocity growth. C. the SRAS curve will eventually shift upwards after an increase in velocity growth. D. the AD curve will eventually shift back to its original position after an increase in money supply growth.
A major reason that firms form a cartel is to
A. enlarge the market share for each producer. B. maximize joint profits. C. reduce the elasticity of demand for the product. D. minimize the costs of production.