Total revenue is the same for every price-quantity combination along a unit elastic demand curve. ...

Total revenue is the same for every price-quantity combination along a unit elastic demand curve.
 a. True
  b. False

QUESTION 2

If demand is elastic, a decrease in price leads to a decrease in total revenue.
 a. True
  b. False

QUESTION 3

As price decreases along a linear demand curve, price elasticity of demand decreases.
 a. True
  b. False

QUESTION 4

A perfectly inelastic demand curve is
 a. a vertical straight line
  b. a horizontal straight line
  c. a downward-sloping straight line
  d. an upward-sloping straight line
  e. not a straight line

QUESTION 5

If a firm facing a perfectly elastic demand curve raises its price,
 a. it will still sell exactly the same amount of output as it did at the lower price
  b. it will lose some, but not all, of its sales
  c. its sales will decrease to zero
  d. its sales will increase
  e. it is impossible to predict what will happen to its sales

QUESTION 6

A perfectly elastic demand curve is
 a. a vertical straight line
  b. a horizontal straight line
  c. a downward-sloping straight line
  d. an upward-sloping straight line
  e. not a straight line