a. increase demand.
b. decrease demand.
c. increase quantity demanded.
d. decrease quantity demanded.
2.An increase in the price of a good will
a. increase supply.
b. decrease supply.
c. increase quantity supplied.
d. decrease quantity supplied.
3.An increase in price causes an increase in total revenue when demand is
a. elastic.
b. inelastic.
c. unit elastic.
d. All of the above are possible
4.Which of the following could be the price elasticity of demand for a good for which an increase in price would decrease revenue?
a. 0.6
b. 0.9
c. 1
d. 2.6
5.Other things equal, when the price of a good falls, the
a. quantity supplied of the good increases.
b. supply decreases.
c. quantity supplied of the good decreases.
d. demand increases.