Suppose the total revenue curve is derived from a particular linear demand curve. That demand curve must be:
A. inelastic for price declines that increase quantity demanded from 2 units to 3 units.
B. elastic for price declines that increase quantity demanded from 5 units to 6 units.
C. inelastic for price increases that reduce quantity demanded from 4 units to 3 units.
D. elastic for price increases that reduce quantity demanded from 4 units to 3 units.
D. elastic for price increases that reduce quantity demanded from 4 units to 3 units.
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Joe has been unable to find a job because he lacks the necessary computer skills. Joe is
A) cyclically unemployed. B) skill-set unemployed. C) frictionally unemployed. D) structurally unemployed. E) educationally unemployed.
Customers are usually more willing to pay more for the first unit of a good they purchase than for the second, third, or subsequent units. This implies that
A) typical consumers are irrational. B) firms are using non-linear price discrimination. C) firms are unable to determine their customers' reservation prices. D) typical consumers have a downward sloping demand curve.