Supply and Demand

A. An increase in price must raise profits
B. An increase in price decrease revenue
C. An increase in price increase revenue
D. A decrease in price reduces sales

A. Demand is price elastic
B. Demand is price inelastic
C. The demand curve is downward slog
D. An increase in income will reduce the quantity demanded

A. The products are substitutes and demand is cross price elastic
B. The products are substitutes and demand is cross price inelastic
C. The products are complements and demand is cross price elastic
D. The products are complements and demand is cross price inelastic

A. The price elasticity of demand is -2
B. The good is inferior
C. Income elasticity is + 0.5
D. Income elasticity is + 2

A. Demand is inversely related to income
B. Demand in inversely related to price
C. Demand is directly related to price
D. Demand is inversely related to the price of substitutes

A. Shift demand for an inferior product outward
B. shift demand for an inferior product inward
C. shift supply for an inferior product outward
D. Shift supply for an inferior product inward

A. Utility is at a maximum with the first unit
B. Increasing units of consumption increase the marginal utility
C. Marginal product will fall as more units are consumed
D. Total utility will rise at a falling rate as more units are consumed

A. Will cause an inward shift of demand
B. Will cause an outward shift of supply
C. May be caused by a fall in demand
D. Leads to a higher level of production

A. Quantity setting
B. price fixing
C. price rationing
D. quantity adjustment.

A. normal goods
B. unrelated goods
C. Substitutes.
D. Complements