Author Question: The supply curve for CDs shows the A) minimum price that consumers are willing to pay if a given ... (Read 73 times)

Pineapplelove6 · **on:** Jun 29, 2018

The supply curve for CDs shows the

A) minimum price that consumers are willing to pay if a given quantity of CDs is available.
B) maximum price that consumers are willing to pay if a given quantity of CDs is available.
C) maximum price that producers must be offered to get them to produce a given quantity of CDs.
D) minimum price that producers must be offered to get them to produce a given quantity of CDs.

Question 2

The marketing people for AT&T believe that if they lower the price of long-distance phone calls by 5 percent, their quantity demanded will increase by 15 percent. If they are correct in their belief, then

A) the demand for long-distance phone calls is price inelastic.
B) the total revenue from long-distance phone calls will increase if they lower the price.
C) the demand for long-distance phone calls is income elastic.
D) the total revenue from long-distance phone calls will decrease if they lower the price.