Assume That the Supply Curve for a Good Is Constantly

question 114

Multiple Choice

Assume that the supply curve for a good is constantly fixed at 100 units. Now suppose that the demand curve for the good increases such that the equilibrium price rises from $20 to $30. How does total revenue for the sale of this product change?

• A) Total revenue rises by $1,000.
• B) Total revenue does not change.
• C) Total revenue rises by $3,000.
• D) Total revenue rises by $10.

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Definitions:

Transnational Corporations

Are large businesses with head offices in rich countries. They rely increasingly on foreign labour and foreign production; skills and advances in design, technology, and management; world markets; and massive advertising campaigns. They are increasingly autonomous from national governments.

Nation-states

Political entities consisting of a sovereign state whose citizens or subjects are relatively homogeneous in factors such as language or common descent.

Autonomous

The quality of having independence or self-governance, capable of making decisions or operating independently from external control.

McDonaldization

Refers to the application of the rationalization principles of the fast-food industry to other sectors of society.