Question

14. The demand curve for a typical good has A. a negative slope because some consumers switch to other goods as the price of the good rises. B. a negative slope because the supply of the good rises as demand rises. C. a negative slope because the good has less "snob appeal" as its price falls. D. an inverse slope because as the price goes up, the good has more profitability. E. a positive slope because the price is a clear indicator of need.

25. The demand for computers has risen dramatically at the same time that the unit cost of production has decreased. As a result, we can expect A. a decrease in price and no predictable impact on output. B. a definite decrease in price and increase in output. C. an increase in output with no predictable change in price. D. no predictable changes in either price or output.

39. The local symphony recently raised its price for tickets to their summer concerts in the park. At the end of the summer season, the symphony was surprised to see that total revenue had actually decreased. The reason was that the elasticity of demand for tickets was

		A. unit elastic.
		B. inelastic.
		C. elastic.
		D. Not enough information is given.

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