If the demand for a good is elastic, then total revenue
a. increases as price increases
b. remains constant as quantity demanded increases
c. increases as price decreases
d. decreases as quantity demanded increases
e. decreases as price decreases
QUESTION 2If the administration raises tuition on our campus in order to increase revenue, it will
a. not be successful if the demand curve slopes downward
b. be successful if demand is elastic
c. be successful if demand is inelastic
d. be successful if supply is elastic
e. be successful if supply is inelastic
QUESTION 3The total revenue from selling trucks is equal to
a. the price of a truck times the quantity sold
b. the change in quantity sold divided by the change in price
c. average cost times quantity produced
d. the price of a truck times the quantity produced
e. the price of a truck times the price elasticity of demand
QUESTION 4Total revenue is maximized where demand is inelastic.
a. True
b. False
QUESTION 5Price elasticity is unit elastic at the midpoint of a linear, downward-sloping demand curve.
a. True
b. False
QUESTION 6Elasticity rises as price falls along a linear, downward-sloping demand curve.
a. True
b. False