A demand curve which is ________ represents perfectly inelastic demand, and a demand curve which is ________ represents inelastic demand. A. horizontal; downward sloping B. upward sloping; horizontal C. vertical; downward sloping D. downward sloping; vertical
Holding everything else constant, the demand for a good tends to be more elastic
A.
the less important the product is in consumers' budgets.
B.
the more substitutes there are for the good.
C.
the shorter the time period involved.
D.
the more consumers perceive the good to be a necessity.the more substitutes there are for the good.Which of the following could explain why the demand for table salt is inelastic?
A.
Salt is a luxury for high-income consumers but a necessity for low-income consumers.
B.
Households devote a very small portion of their income to salt purchases.
C.
Salt is a rare commodity.
D.
Salt is a luxury good.Households devote a very small portion of their income to salt purchases.When demand is unit elastic, a change in price causes total revenue to stay the same because
.A.
buyers are buying the same quantity.
B.
total revenue never changes with price changes.
C.
the percentage change in quantity demanded exactly offsets the percentage change in price.
D.
the change in profit is offset by the change in production cost.the percentage change in quantity demanded exactly offsets the percentage change in price.If the price elasticity of demand for canned soup is estimated at −1.62. What happens to sales revenue if the price of canned soup rises?
A.
It rises.
B.
It rises by 1.62 percent.
C.
It falls by 162 percent.
D.
It falls.It falls.Which of the following statements is true?
A.
Whenever a firm increases its quantity sold its revenue will increase.
B.
Total revenue will equal zero when the demand for a product is unit elastic.
C.
When a firm lowers its price its total revenue may either increase or decrease.
D.
Whenever a firm raises its price its total revenue will increase.When a firm lowers its price its total revenue may either increase or decrease.Suppose a decrease in the supply of paper results in an increase in revenue. This indicates that
A.
the demand for paper is inelastic.
B.
the supply of paper is inelastic.
C.
the demand for paper is elastic.
D.
the supply of paper is elastic.the demand for paper is elastic.Which of the following statements is true?
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Part 1
A.
If the price of a good is raised and total revenue increases, demand is inelastic.
B.
If the price of a good is lowered and total revenue increases, demand is inelastic.
C.
If the price of a good is lowered and total revenue decreases, demand is elastic.
D.
If the price of a good is raised and total revenue does not change, demand is perfectly elastic.If the price of a good is raised and total revenue increases, demand is inelastic.
