ECON 101 Study Guide - Quiz Guide: Inferior Good, Normal Good, The Wall Street Journal
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Dr. dickson: suppose that the price elasticity of demand is -1. 5. If price falls, total revenue will remain the same fall rise a. b. c: double, c and d. Answer c: suppose that the price elasticity of demand is -0. 7. The demand for this good is inelastic: perfectly inelastic b, unitary elastic, elastic, perfectly elastic. Answer b: the abc computer company wants to increase the quantity of computers it sells by 5%. If the price elasticity of demand is -2. 5, the company must: increase price by 0. 5%, decrease price by 0. 5%, increase price by 2. 0%, decrease price by 2. 0%. Answer d: if demand is elastic, then total revenue will ___________ if price _______, increase, rises, increase, falls, decrease, rises, decrease, falls, both b and c. The wall street journal carried a story about delta airlines cutting business fares by about. 21%, but experiencing a 10% increase in revenue.
