Suppose a decrease in the supply of paper results in an increase in revenue. This indicates that
A) the demand for paper is elastic. B) the supply of paper is elastic.
C) the supply of paper is inelastic. D) the demand for paper is inelastic.
D
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A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline
A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change. B) incorrectly implies that the price of housing will rise when demand increases. C) incorrectly implies that more housing will be demanded at higher prices. D) correctly implies that an increase in demand will increase the market clearing price.
Technological changes that decrease minimum efficient scale
a. reduce concentration b. increase concentration c. increase product diversification d. increase the value of existing assets e. decrease the exchange rate