Suppose Sam's Shoe Co. makes only one kind of shoe, which sells for $50 a pair. If they sold 500,000 pairs of shoes, then their total revenue would be:

A. $2,500,000.
B. $10,000.
C. $25,000,000.
D. Cannot answer this question without knowing the cost per pair.

Answer: C

Economics

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If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic

a. True b. False Indicate whether the statement is true or false

Economics

Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?

a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.

Economics