In which of the following instances will total revenue decline

In which of the following instances will total revenue
increase?

Question 1 options:

	price decreases and demand is inelastic.
	price decrease and demand is unitary elastic.
	price increases and demand is inelastic.
	price increases and demand is elastic.

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Question 2 (1 point)

Question 2 Saved

The price of product X is reduced from $100 to $90 and, as a
result, the quantity demanded increases from 50 to 55 units.From
this we can conclude that the demand for X in this price range:

Question 2 options:

	has declined.
	is unitary elastic.
	is inelastic.
	is elastic.

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Question 3 (1 point)

Question 2 Saved

Suppose the price elasticity of demand for bread is 0.15.If the
price of bread decreases by 100 percent, the quantity demanded will
increase by:

Question 3 options:

	15 percent and total expenditures on bread will decrease.
	15 percent and total expenditures on bread will increase.
	150 percent and total expenditures on bread will decrease.
	1.5 percent and total expenditures on bread will increase.

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Question 4 (1 point)

Question 2 Saved

If the demand for gasoline is relatively inelastic, a 10 percent
decrease in the price of gasoline will:

Question 4 options:

	increase the quantity demanded by less than 10 percent.
	increase the quantity demanded by more than 10 percent.
	decrease the quantity demanded by less than 10 percent.
	decrease the quantity demanded by more than 10 percent.

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Question 5 (1 point)

Question 2 Saved

If the demand for a product is said to be unitary elastic, the
value of the price elasticity coefficient is:

Question 5 options:

	zero
	greater than one
	equal to one
	less than one

Answer

1) In which of the following instances will total revenue
increase?

Solution: price decreases and demand is inelastic

Explanation: total revenue decline if price rises and demand is
elastic and vice a versa

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2) The price of product X is reduced from $100 to $90 and, as a
result, the quantity demanded increases from 50 to 55 units. From
this we can conclude that the demand for X in this price range
price rises and demand is elastic

Solution: is unitary elastic

Explanation: A 10% fall in price increases the quantity demanded
by 10%

3) Suppose the price elasticity of demand for bread is 0.15.If
the price of bread decreases by 100 percent, the quantity demanded
will increase by

Solution: 15 percent and total expenditures on bread will
increase.

Explanation:

0.15 = % change in quantity demanded / 100

% change in quantity demanded = 0.15*100 =15%

If it is positive then when price falls demand increases

4) If the demand for gasoline is relatively inelastic, a 10
percent decrease in the price of gasoline will

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Solution: increase the quantity demanded by less than 10
percent.

Explanation: If demand is price inelastic, an decrease in price
(decreases) total revenue because the price (decrease) is
proportionately (smaller) then the (increase) in quantity

5) If the demand for a product is said to be unitary elastic,
the value of the price elasticity coefficient is

Solution: greater than one

Explanation: coefficient is greater than one