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12) If the total expenditure on photocopiers increases when the price of photocopiers rises, the price elasticity of demand is A) greater than one (demand is elastic). B) less than one (demand is inelastic). C) equal to one (demand is unit elastic). D) not determinable from the information given. E) exactly zero.

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Deanna Hettinger
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4 Jul 2018
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Related questions

38) A technological breakthrough lowers the cost of photocopiers. If the demand for photocopiers is price inelastic, we predict that photocopier sales will A) rise and total revenue will decrease. B) fall and total revenue will increase. C) rise and total revenue will increase. D) fall and total revenue will decrease. E) rise, but changes in total revenue will depend on elasticity of supply.

How would the following changes in price affect total revenue? That is, would total revenue increase, decline, or remain unchanged?

a) Price falls and demand is inelastic.

b) Price rises and demand is elastic.

c) Price rises and demand is inelastic.

d) Price falls and demand is elastic.

e) Price falls and demand is of unit elasticity.

1. The concept of price elasticity of demand measures:

a. the slope of the demand curve.

b. the number of buyers in a market.

c. the extent to which the demand curve shifts as the result of a price decline.

d. the sensitiveness of quantities demanded to price changes.

2. When the percentage change in price is less than the resulting percentage change in quantity demanded:

a. demand is elastic.

b. demand is inelastic.

c. demand is unit elastic.

d. none of the above.

3. The elasticity of demand:

a. will be the same at each price-quantity combination on a stable demand curve.

b. tends to be elastic in high-price ranges and inelastic in low-price ranges.

c. tends to be inelastic in high-price ranges and elastic in low-price ranges.

d. is infinitely large for a perfectly inelastic demand curve.

4. Suppose that as the price of Y falls from $2.00 to $1.80 the quantity of Y demanded increases from 110 to 121. It can be concluded that the price elasticity of demand is: _______.

5. Total revenue rises as the price of a good increases if price elasticity of demand is:

a. unitary elastic

b. perfectly inelastic.

6. The demand for such products as salt, bread, and electricity tend to be:

a. relatively price elastic.

b. relatively price inelastic.

c. of unit price elasticity.

d. perfectly price elastic.

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