7. If demand is inelastic and the price falls, the total revenueA. ríses.B. falls.C. remains constant.D. may rise, fall or remain constant.

The demand is inelastic when percentage change in the quantity demanded is less than percentage…

Answered: 7. If demand is inelastic and the price…

7. If demand is inelastic and the price falls, the total revenue A. rises. B. falls. C. remains constant. D. may rise, fall or remain constant.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 15RQ: If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on...

See similar textbooks

Related questions

Q: Does the effect of Monetary Policy can be seen much quicker than the effect of Fiscal Policy? Is the...

A: The two most widely used instruments for influencing a country's economic activity are monetary poli...

Q: What are the four major sources of market failure? Explain briefly why each prevents the competitive...

A: Market failure is defined as imperfections that occur in the market between buyers and sellers that ...

Q: In the Solow model with production function Y = K3 L0.7 which of the following saving rates minimize...

A: The Solow–Swan model, sometimes known as the exogenous growth model, is a long-run economic growth m...

Q: How would the following events be shown using a production possibilities curve for shelter and food?...

Q: 2. What can cause inflation according to Keynes? a. increase in money supply b. increase in unit lab...

A: When talking about Keynesian economics, it explains the economic theory that rely on the fluctuation...

Q: Impact of an exogenous increase in world ings a. sav- b. Impact of increased business uncertainty

A: S-I shows market for savings and investment. Equilibrium in this market occurs where savings is equa...

Q: How many states have in Russia?

A: Russia is a country that comes under the continent of North Asia and Eastern Europe and is the world...

Q: nomics Volume of Production Price (dollars) Total Production Cost (dollars) 10 1434 22841 30 991 264...

A: Dear learner you have posted multiple questions, as per our policy we have solved only first questio...

Q: Discuss wether a fall in price of a product will always be accompanied by a reduction in the quantit...

A: Price elasticity of demand refers to the degree of responsiveness of the quantity demanded of the go...

Q: 4 goods. Goodds A and B are intermediate goods Goods Cand D are final goods The quantities produced ...

A: Intermediate goods are referred to as those goods that are used by businesses in producing goods or ...

Q: 5. This is the sequel to a question on the previous P-set that used this aggregate production functi...

A: Given production function Y=A×K×L For A=2 and K=3 Y(L)=23×L ... (1) For ...

Q: portional income tax on the representative cc sumer's wage income. That is, the consume wage income ...

Q: For given domestic and foreign interest rates, an increase in the expected price of foreign currency...

A: Since the interest rates are fixed, an increase in expected price of foreign currency in terms of do...

Q: which statement is true and why are the others false.

A: Moving production from high cost producer to low cost producer will decrease total supply: If the go...

Q: QUESTION 11 Which of the following pictures represents the effect of an increase in available hours ...

A: Leisure time is when you are not working and may relax and do things that you like.

Q: 9- The manufacturer of a superconducting magnetic energy storage system can buy a new equipment for ...

A: Given: The future amount of the equipment is = $7,000,000 Years = 3 The inflation rate is = 10% The ...

Q: Which of the following situations would lead to actual inflation of 3%? A. future inflation is 1%; o...

A: The rate at which a basket of selected goods and services in an economy's average price level rises ...

Q: Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or...

A: In the above diagram, the potential GDP is achieved when the AD curve intersects the AS curve. In th...

Q: A firm has the following average total cost curves: Quantity ATC11 ATC22 ATC33 ATC44 1 100 150 50 2...

A: Answer-

Q: Consider a world in which only two goods are sold: x and y, and where good x is inferior. A. |Write ...

Q: Sonny borrowed a certain amount on June 1990 from Romeo. Two years later, Sonny borrowed again from ...

A: * SOLUTION :- From the given information the calculation as follows.

Q: Compared to a competitive labor market, wages in a bilateral monopoly, are: Select the correct answe...

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific ...

Q: a. Define the gravity model. Specify the variables utilised. b. Apply the gravity model to India and...

A: Answer a. In international economics, the gravity model of international commerce is a model that f...

Q: How has that migration of labour been of advantage to other countries?

A: Migrant labour are considered as those informal and unskilled workers who pass about systematically ...

Q: 3. If the economy characterized by this production possibilities table and curve were producing 3 au...

A: The question talks about PPC which is such a curve that represent possible combination of two goods ...

Q: If this product is selling at $20, how much is being 25- 20- 15+ 10- 5. produced? 10 20 30 40 50 A 3...

A: Answer: According to the given graph, if the price is given on the y-axis and the quantity is given...

Q: this question has three questions . What proportion of this country’s total gross capital formation ...

A: The current account deficit is the difference between the value of imported goods and services and t...

Q: Suppose that demand for automobiles increases by 20% when consumers’ incomes increase by 15%. What i...

A: Introduction: Elasticity of demand is that the responsiveness of a commodity's quantity demanded to ...

Q: QD = 100 – 2p QS = 2p – 20 Find the domestic market equilibrium. Graph the impact of opening to i...

A: 1) To find the domestic price equilibrium first we need to make the quantity supplied equal to the q...

Q: (a) The Consumer Price Index (CPI) in December 1980 was 86.3. The Consumer Price Index as of Decembe...

A: a. If minimum wage in 1980 was w1980, minimum wage in 2021 will be w2021=w1980*278.886.3≈3.23w1980 b...

Q: Explain the different intervention measures that are taken by the government to control inflation? C...

A: Inflation is defined as a rise in the price of all products and services generated in the economy as...

Q: what is inflation , how it is related to interest rate 3 example from all countries

A: please find the answer below.

Q: ATC MC AVC MR HA A C K DE Quantity osad

A: In perfectly competitive market, Price is constant so it is equal to marginal revenue. At profit max...

Q: Uncertainty and Insurance 3) There are 3 agents, one risk averse, another risk neutral, and the thir...

A: Given information 3 agents are given Utility functions of all 3 agents Each agent has wealth = $9 p...

Q: 4. About 10 years ago, the POM Pomegranate Juice brand was created by a middle-aged couple in Nebras...

A: Opportunity cost and consumers: Consumers have to make choices while buying goods and services. For ...

Q: Unions tend to the introduction of labor-saving technology. Select the correct answer below: promote...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Discuss the role of market mechanism in economic

A: Free market refers to the economic system in which the prices of goods and services are self regulat...

Q: Identify several different types of financial institutions, and describe the main services these ins...

A: Answer:- Different types of the financial institution and main services of this institution offers a...

Q: Why monetary policy and fiscal policy are important macroeconomic tools used to stimulate the econom...

A: Monetary policy is important to control the money supply in a economy . Inflation and interest rates...

Q: demand curve in market 1 is p1 = 200 – y1. The inverse demand curve in market 2 is p2 = 400 – y2. Th...

A: The optimal price is the price at which a seller can make the most profit. In other words, the price...

Q: 2. Which of the following outcome is likely to occur in the long-run. (a) zero unemployment if the r...

A: The end of the day may be a span of your time throughout that all production parameters and prices a...

Q: A series of uniform accounts over an infinite period of time. Depreciation Annuity O Perpetuity Infl...

A: Depreciation refers to the rate of decline of capital stock. Annuity refers to a stream of income fr...

Q: The graph shows the demand curve for smartphones and the supply curve of smartphones. Price (dollars...

A: Equilibrium price and quantity of smartphones will occur at a point where demand curve of smartphone...

Q: Suppose there is a point right above the PPF ine: Which of the following statements are true O This ...

A: Ghe production possibility curve is the representation of the potential output of two goods that can...

Q: Data for 2019 (Base Year) Data for 2020 Quantity Price Quantity Price Potato 600 2.50 68...

A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be...

Q: Which of the following is not a true statement about gains from trade? Select the correct answer bel...

A: Here , we have to find which option is not a true statement about gains from trade.

Q: The table shows the demand and supply schedules for on-campus housing. Quantity demanded Quantity If...

A: The maximum amount of rent that can be charged by the owner is called the rent ceiling.

Q: Income Expenditures 0 100 100 150 200 200 300 250 Refer to the table above to answer the following...

A: Aggregate expenditure is a sum of consumption spending, investment, government spending and net expo...

Q: A U.S. Based company has a short-term cash balance of USD 10 million. The company intends to invest ...

A: Current spot rate = 1.6971 Forward rate = 1.6950

Q: Restrictions on imports may not include tariffs. O True O False

A: Imports refers to purchase of goods that are produced in foreign countries by domestic residents of ...

Question

7. If demand is inelastic and the price falls, the total revenue
A. ríses.
B. falls.
C. remains constant.
D. may rise, fall or remain constant.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

a. Explain the main reasons that caused a fall of the oil price started in 2015. b. Is the elasticity of demand and supply for oil in the short-run elastic or inelastic? Explain why? please make sure the answer is correct 100% and to answer in your words.
5% increase in the price of Burger King resulted in 16% increase in the demand of Hamburger. What is cross elasticity of demand here? a. 3.2 b. 2.8 c. 2.6 d. 4.3
#8 What happens to total revenue (TR) if the price rises on a product with demand that is price elastic? Total revenue will remain the same. Total revenue will fall. Total revenue will rise.
A firm's individual demand for good x satisfies, InQ1-8.2/nP +(0.9)InP, +(1.42)InM+ (0.3)/n4 S A new ad campaign for Y has increased P by 7% (%ΔΡ = 7%). By what percent will this change quantity demanded of x ? (It could be positive or negative.) % A recession is expected to drive income down by 5% next year (% AM = -5%). By what percent will this change quantity demanded? (It could be positive or negative.) %
6. Best Buy sells Q units of áat-screen TVs each year. Best Buy executives also know that the price elasticity of demand for áat-screen TVs is eQ;P = 1:5. They propose a 20% reduction in the price of áat-screen TVs claiming that total revenue (a) will increase by 15%. (b) will increase by 30%. (c) will increase by 3:5%. (d) will decrease by 30%. (e) will increas
Describe the mechanism by which supply creates its osi1 demand.
A price change causes the quantity demanded of a good to decrease by 30 percent, while the total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic? Explain.
Describe the general appearance of a demand or a supply curve with infinite elasticity.
An increase in the supply of a good will decrease the total revenue producers receive if a. the demand curve is inelastic. b. the demand curve is elastic. c. the supply curve is inelastic. d. the supply curve is elastic.
If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on price?