The price elasticity of demand for a vertical demand curve is:
a. perfectly elastic.
b. perfectly inelastic.
c. unitary elastic.
d. elastic.
e. inelastic.
QUESTION 2Suppose Good Food's supermarket raises the price of its steak and finds its total revenue from steak sales does not change. This is evidence that price elasticity of demand for steak is:
a. perfectly elastic.
b. perfectly inelastic.
c. unitary elastic.
d. inelastic.
e. elastic.
QUESTION 3Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the college. It can be concluded that the president thinks that demand to attend this college is:
a. elastic.
b. inelastic, but not perfectly inelastic.
c. unitary elastic.
d. perfectly elastic.
QUESTION 4Along the elastic range of a demand curve, a price change causes:
a. a change in total revenue in the opposite direction.
b. a change in total revenue in the same direction.
c. no change in total revenue.
d. an unpredictable change in the total revenue.
QUESTION 5If a decrease in the price of theater tickets increases the total revenue earned by the theater, this is evidence that demand is:
a. price elastic.
b. price inelastic.
c. unitary elastic.
d. perfectly inelastic.
QUESTION 6Along the elastic range of a demand curve, a decrease in price causes:
a. no change in total revenue.
b. a decrease in total revenue.
c. an increase in total revenue.
d. an unpredictable change in total revenue.
Quick Reply
