If the price of a product increases, then
A. the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
B. the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.
C. the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
D. the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
Answer: D
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If the equilibrium price of bread is $2 and the government imposes a $1.50 price ceiling on the price of bread, then:
a. more bread will be produced. b. there will be a shortage of bread. c. the demand for bread will decrease. d. producers will charge $0.50 for bread. e. $0.50 in tax revenue will be paid for each unit of bread.
Given the information in the table shown, what is the total revenue when 23 units are produced?
This table shows price and quantity produced for a single firm in a perfectly competitive market.
A. $230
B. $10
C. $23
D. $2.30