Other things being equal, the lower the value of elasticity:
A. the more likely the profitability of a price increase.
B. the less likely the profitability of a price increase.
C. the greater the responsiveness in quantity demanded to a price change.
D. the lower the corresponding increase in firm revenue.
A. the more likely the profitability of a price increase.
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The Coase theorem deals with the problem of pollution by
A) giving the government regulatory power over polluters. B) making all polluters stop polluting. C) establishing and enforcing private property rights. D) having the government take over ownership of all polluting processes. E) allowing the government to set the proper emission charge.
In the late 1920s, the U.S. economy experienced a decrease in investment, which perhaps triggered the Great Depression. The decrease in investment
A) increased aggregate supply. B) decreased aggregate supply. C) increased aggregate demand. D) decreased aggregate demand. E) increased potential GDP.