Question

Total revenue will rise whenever

Select all that apply:

A:price is increased for goods with price elastic demand.

B:price is increased for goods with price inelastic demand.

C:price is lowered for goods with price elastic demand.

D:price is lowered for goods with price inelastic demand.

2.Which of the following are reasons that explain how a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves?

Select the correct answer below:

A.specialization in a particular small job allows workers to focus on the parts of the production process where they have an advantage

b.workers who specialize in certain tasks often learn to produce more quickly and with higher quality

c.specialization allows businesses to take advantage of economies of scale

D.all of the above

3.Which of the following is not a true statement about consumer surplus?

Select the correct answer below:

a.Consumer surplus is a type of benefit to consumers.

b.On a graph, consumer surplus is the area above the market price and below the demand curve.

c.Consumer surplus is the same as producer surplus.

d.Consumer surplus illustrates that the equilibrium price in a market is less than what many consumers are willing to pay.

Answer 1

Total Revenue will rise whenever if price is Increased for the goods with price inelastic demand because percentage Decrease in Quantity Demanded is less than percentage Increase in Price. Total revenue will also rise whenever the price is lowered for goods with price elastic demand because percentage increase in quantity demanded is greater than percentage decrease in the price.

Hence, select Both B and C.

2) all of the above are plausible reasons that explain how a group of worker each specialising in certain task produce so much more than the same number of workers who try to produce the entire good of service by themselves

Hence, Option D is correct.

3) consumer surplus is not same as the producer surplus. On the graph, Producer surplus is the area below the market price and above the supply curve whareas consumer surplus is the area above the market price and below the demand curve.

Hence, Option c is correct.