1. Revenue increases when
2. An increase in the price of an inelastic good
3. Price elasticity of Demand increases when
4. The purpose of a market in a market system is to
5. By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. Which of the following is an attribute of specialization?
6. The market system promotes progress by 11
7. Productive efficiency is achieved when
8. The market is said to be in equilibrium when
9. The market will move to a higher equilibrium price if
10. The intersection of supply and demand will be at a lower equilibrium price but a higher equilibrium quantity if
11. When a price ceiling occurs
12. Because the goals of firms, entrepreneurs, and workers have different incentives, which of the following principles applies?