Does revenue increase or decrease if the demand curve is inelastic at the initial price? how does it change if the demand curve is elastic? consider the extreme case where the demand curve is perfectly inelastic and then generalize to the inelastic case. use the rectangle drawing tool to shade in the increase in revenue (c), if any, and the decrease in revenue (b), if any, from increasing price from p 1 to p 2. properly label the shaded area(s). carefully follow the instructions above, and only draw the required object.

What happens when a bank is required to hold more money in reserve?

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Under t, the point (0,2) gets mapped to (3,0). t-1 (x,y) →