If the price of good X falls and the demand for good X is unit elastic, then the percentage rise in quantity demanded is __________ the percentage fall in price, and total revenue __________.
A) greater than; rises
B) less than; falls
C) equal to; remains constant
D) greater than; falls
E) less than; rises
Ans: C) equal to; remains constant
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The idea that creating incentives for individuals and firms to increase productivity leading to an increase in long-run aggregate supply is
A) the Ricardian equivalence theorem. B) demand-side economics. C) supply-side economics. D) consistent with crowding out.
A monopolist can:
a. produce as much or as little as it wants without affecting price. b. decide the price that will be charged in the market. c. provide discounts below market price to attract more customers. d. price its products by considering the possible reactions of future competitorsor firms that produce close substitutes for its output.