1. An increase in the price of a good will
a. increase quantity demanded
b. increase demand
c. decrease demand
d. decrease quantity demanded
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2. An increase in the price of good will
a. decrease quantity supplied
b. increase quantity supplied
c. decrease supply
d. increase supply
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3. An increase in price causes an increase in total revenue when demand is
a. inelastic
b. elastic
c. unit elastic
d. all of the above
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4. Which of the following could be the price elasticity of demand for a good for which a price increase would decrease revenue?
a. 1.0
b. 0.6
c. 2.6
d. 0.9
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5. Other things equal, when the price of good falls, the
a. quantity supplied of good increases
b. demand increases
c. supply decreases
d. quantity supplied of the good decreases
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