Author Question: When the price of milk goes up as a result of a rightward shift of the demand curve for milk, the ... (Read 116 times)

mwit1967 · **on:** Jun 29, 2018

When the price of milk goes up as a result of a rightward shift of the demand curve for milk, the total revenue collected by milk producers will

A) increase only if milk is inelastic in supply.
B) decrease only if milk is elastic in supply.
C) remain constant only if milk has a unitary price elasticity of supply.
D) none of the above

Question 2

Bobby is offered a job as a salesperson in which there is a 50 percent chance that he will make 2,000 and a 50 percent chance that he will make 10,000. Bobby's utility of wealth curve is shown in the figure above.

What is Bobby's expected income from taking this job? A) 4,000
B) 6,000
C) 2,000
D) 10,000