A monopolist produces in the elastic segment of its demand curve because when it lowers the price
A) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases.
B) the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases.
C) the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases.
D) the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases.
Answer: A
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In the short run, an increase in the growth rate of the quantity of money ________ the nominal interest rate and in the long run it ________ the nominal interest rate
A) lowers; lowers B) raises; lowers C) lowers; raises D) raises; raises E) does not change; raises
To decrease the money supply, the Federal Reserve could
A) conduct an open market sale of Treasury securities. B) lower the discount rate. C) raise income taxes. D) lower the required reserve ratio. E) raise transfer payments.