Lead is an important input in the production of crystal. If the price of lead de

Question

Lead is an important input in the production of crystal. If the price of lead decreases, then we would expect the supply of

Select one:

a. lead to increase.

b. crystal to increase.

c. crystal to decrease.

d. crystal to be unaffected.

If the demand for textbooks is inelastic, then a decrease in the price of textbooks will Select one: a. not change total revenue of textbook sellers. b. decrease total revenue of textbook sellers. c. increase total revenue of textbook sellers. d. There is not enough information to answer this question.

Explanation / Answer

1.
B
Lead is an input factor of production, whose price has come down. So, the cost of production of crystal, will decrease. It will make the supply of crystal to increase and move to the rightward direction.

2.
B
Since, the demand of textbook is inelastic, then decrease in the price of these textbooks, will not increase the sales. So, revenue earned by the sellers, will decrease as price has come down.

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