If a Change in the Price of a Good Results

question 19

Multiple Choice

If a change in the price of a good results in no change in total revenue:

• A)the demand for the good must be elastic
• B)the demand for the good must be inelastic
• C)the demand for the good must be unit elastic
• D)buyers must not respond very much to a change in price

Understand the role of world price in determining whether a country will import or export a good.

Analyze the impact of tariffs on the quantity of goods imported or exported.

Understand the effects of tariffs and import quotas on domestic markets, including impacts on consumer surplus, producer surplus, and total surplus.

Analyze the impact of trade (both free and restricted) on domestic producers and consumers.

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Definitions:

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Neighbors

Individuals or entities located near one another, often used in the context of residential, geographic, or international proximity.

Market Failure

An instance where the free market's distribution of goods and services is inefficient, usually causing a reduction in net social welfare.

Allocate Resources

The process of distributing available resources, such as time, money, and assets, among various projects or business units to maximize efficiency and achieve strategic goals.