The total revenue/expenditure rule of elasticity suggests that when price and total revenue go
A. in opposite directions, demand is elastic.
B. in opposite directions, demand is inelastic.
C. in same direction, demand is elastic.
D. to infinity, demand is perfectly inelastic.
Answer: A
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As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy,
a. eventually it will become difficult for the country to borrow in global credit markets. b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds. c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors. d. all of the above are correct.
GDP can rise as a result of a rise in __________________, and Real GDP can rise as a result of a rise in _______________________
A) prices or output; prices only. B) prices only; prices or output. C) prices or output; output only. D) prices or output; prices or output.