Author Question: Assume that the demand curve for a commodity is represented by the equation Q = 25 - 1.3P. Calculate ... (Read 51 times)

silviawilliams41 · **on:** Jun 30, 2018

Assume that the demand curve for a commodity is represented by the equation Q = 25 - 1.3P. Calculate the change in total spending for this commodity when price falls from 4.50 to 4.20.
a. Total spending rises by 4.11.
b. Total spending declines by 4.11.
c. Total spending declines by 8.20.
d. Total spending rises by 8.20.

Question 2

The accounting profit of a business firm is also called:
a. royalty income.
b. net income from equity.
c. compensatory income.
d. windfall gain.
e. net operating income.