Summarize the relationship between elasticity, price changes, and changes in total revenue
What will be an ideal response?
When demand is inelastic, total revenue moves in the same direction as price, and in the opposite direction of quantity demanded. When demand is elastic, total revenue moves in the opposite direction of price, and the same direction as quantity demanded. When demand is unit elastic, a price change has no effect on total revenue.
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During a boom expansionary economy, public assistance payments and unemployment compensation payments automatically decrease while income taxes automatically increase. Which of the following best describes the effect of these changes on aggregate demand? a. Aggregate demand will be less than it would be without these automatic stabilizers. b. Aggregate demand will be the same as it was before
the expansion. c. Aggregate demand will be less than it was before the expansion. d. none of the above
The most rapid expansion in the use of electricity was in the period from
A. 1900-1910. B. 1910-1920. C. 1920-1930. D. 1930-1940.