This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference ... (Read 157 times)

charchew

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
Consider the indifference maps shown above. If X and Y are perfect substitutes, your indifference curves between them would look like those in
 
  A) Figure A.
  B) Figure B.
  C) Figure C.
  D) Figure D.

Question 2

What effect does a price increase have on producers' total revenue?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juliaf

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The effect of a price increase in total revenue depends on the elasticity of demand. If the demand is elastic, then total revenue will decrease because the decrease in the quantity demanded will outweigh the effect of the higher price. If the demand is inelastic, then total revenue will increase. In this case, the decrease in the quantity demanded is proportionally less than the increase in price and so the higher price leads to increased total revenue. Finally, if the demand is unit elastic, then the higher price does not change the total revenue. The percentage decrease in the quantity demanded just equals the percentage increase in the price and so the two effects just offset each other. The total revenue does not change.


charchew

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ASDFGJLO

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Vision with macular degeneration is experienced with an inability to focus in the center of the visu Vision with macular degeneration is experienced with an inability to focus in the center of the visu
The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by That politics was always a rough business is shown in this cartoon, which shows Lincoln, assisted by
Fractures are diagnosed based on an X-ray of the broken bone. Shown here: a comminuted fracture of ... Fractures are diagnosed based on an X-ray of the broken bone. Shown here: a comminuted fracture of ...
Single nucleotide polymorphisms (SNPs) are shown in red Single nucleotide polymorphisms (SNPs) are shown in red
An insertion sequence (IS), shown in purple An insertion sequence (IS), shown in purple
Video: Genetic terms Animation

For a complete list of videos, visit our video library