An increase in supply, ceteris paribus, lowers a good's price. If the total revenue of sellers now falls, we know * a)that the good's price elasticity of demand was greater than 1. b)that the good's price elasticity of demand was smaller than 1. c)that the good's demand curve was vertical. d)that the good's price elasticity of demand was equal to 1 e)that the good's demand curve was a rectangular hyperbola.
An increase in supply, ceteris paribus, lowers a good's price. If the total revenue of sellers now falls, we know * a)that the good's price elasticity of demand was greater than 1. b)that the good's price elasticity of demand was smaller than 1. c)that the good's demand curve was vertical. d)that the good's price elasticity of demand was equal to 1 e)that the good's demand curve was a rectangular hyperbola.
Chapter6: Elasticities
Section: Chapter Questions
Problem 5P
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6)An increase in supply, ceteris paribus, lowers a good's
a)that the good's price elasticity of
b)that the good's price elasticity of demand was smaller than 1.
c)that the good's demand curve was vertical.
d)that the good's price elasticity of demand was equal to 1
e)that the good's demand curve was a rectangular hyperbola.
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