Dr. Franke, a perpetual critic of economics, notes that a recent consultant to his medical practice had advised him to raise the prices he charged in order to raise his business revenues. At a university fundraising event he commented to the Chancellor regarding "how ludicrous" some of his faculty members were in giving advice that would drive customers away. He advised the Chancellor that more
"practical, experienced faculty" such as hired by the local Technical College were needed. If demand for Dr. Franke's services is inelastic
a. customers would increase and revenues drop
b. customers would increase and revenues expand
c. customers would decrease and revenues drop
d. customers would decrease and revenues expand
e. only cross-price elasticity is related to revenues
D
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Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
Because industrial countries depend upon the less developed countries for their food and raw materials, the less-developed countries account for the majority of world trade
Indicate whether the statement is true or false