When demand is relatively inelastic, a 5% increase in price will:
a. increase total revenue by more than 5%.
b. increase total revenue by less than 5%.
c. decrease total revenue by more than 5%.
d. decrease total revenue by more than 5%.
b
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Which of the following is likely to occur as the result of the law of diminishing marginal utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Sabine's utility from her first granola bar is greater than Rachel's utility from her second granola bar. C) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant. D) Hudson enjoyed his second slice of pizza more than his first.
If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth. b. higher rates of unemployment. c. lower rates of unemployment. d. higher rates of price level growth.