When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues
a. less than 1; elastic; increase
b. more than 1; inelastic; decrease
c. less than 1; elastic; decrease
d. less than 1; inelastic; increase
e. none of the above
d
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If tax revenue is $230 billion and the government's outlays are $235 billion, then the budget
A) deficit is $5 billion, and government debt will remain the same. B) surplus is $5 billion, and government debt will increase by $5 billion. C) deficit is $5 billion, and government debt will increase by $5 billion. D) deficit is $5 billion, and government debt will decrease by $5 billion. E) surplus is $230 billion, and the budget deficit is $235 billion.
If the monopoly illustrated in the figure above could engage in perfect price discrimination, then each buyer would pay
A) $2.00. B) $3.00. C) $3.50. D) a different price.