Author Question: Which of the following raises the equilibrium price and increases the equilibrium quantity of used ... (Read 125 times)

captainjonesify · **on:** Jun 29, 2018

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

A) a fall in income if used cars are an inferior good
B) an increase in the wage rate paid to used car salespeople
C) neither of the above because the question suggests a violation of the law of demand
D) neither of the above because the question suggests a violation of the law of supply

Question 2

If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its

A) total revenue increases when price decreases.
B) total revenue decreases when price decreases.
C) total revenue remains the same when price decreases.
D) total revenue is zero.