When demand is inelastic, an increase in price will cause

A、An increase in supply

B、A fall in quantity

C、An increase in price.

D、A decrease in producer surplus.

A、an increase in price, as the monopolist passes on the price increase

B、an increase in price only if marginal cost also increases

C、a decrease in price as the monopolist needs to sell more in order to cover increased costs

D、an increase in price only if the elasticity of demand is less than 1.0

When demand begins to revive, a sharp rise in prices is ______.

A．inevitable

B．determined

C．undesirable

D．incredible

Why does a decrease in prices cause an increase in demand?

A．Consumers buy fewer goods when prices are low.

B．Producers make fewer goods when prices are low.

C．Producers make more goods when prices are high.

D．Consumers buy more goods when prices are low.

As Gas Prices Increase, So Do Hardships

By Julie Livingston

Staff Reporter

With gas prices at more than $4 per gallon, many Upton citizens are being forced to break their regular routine and change their way of living.

In the past, high gas prices meant Uptonites would postpone their weekend trip or even summer vacation, but today, Uptonites are changing more than travel plans.

"I started riding my bike to run errands in town," said resident Dale Brown. "But I still have to commute into the city for work, and I'm paying nearly double in gas. I may have to look for a new job."

Not only are people riding bicycles more, buses have been fuller than usual, and the gas prices are forcing the city council to discuss increasing ticket prices by 20 cents.

Still many people are driving as usual, but filling their tanks only half way. "I get calls a few times per week that they've run out of gas, so I drive out to where they are and bring them gas," said Marty Watson, owner of Marty's Gas Station. "It's a shame that [the gas] is not as affordable, so people fill up less and get stuck."

What problem is being discussed?

A．Lower wages

B．Higher fuel prices

C．Rising unemployment

D．Higher healthcare costs

Not enough tourism can lead to ______

A．an increase of unemployment

B．a decrease in tourist attractions

C．the higher cost of support facilities

D．a rise in price and a fall in pay

Not enough tourism can lead to ______.

A．an increase of unemployment

B．a decrease in tourist attractions

C．the higher cost of support facilities

D．a rise in price and a fall in pay

For a profit-maximizing firm, the price level equals its marginal revenue (MR) when ______.

A．in an oligopolistic market.

B．in a monopolistic situation.

C．in a perfectly competitive market.

D．sales rise with the increase in price level.