16- Total revenue will decrease, as the price of a good falls, if the price elasticity of demand for the good is:
Select one:
a. Elastic demand and the elasticity is greater than 1.
b. Inelastic demand and the elasticity is greater than 1.
c. Unit elastic demand.
d. Perfectly inelastic demand.
e. Inelastic demand and the elasticity is less than 1.
Graphically, a inelastic supply curve is:
Select one:
a. Vertical.
b. Horizontal.
c. Relatively steep but not vertical.
d. Relatively flat but not horizontal.
e. Upward-sloping at a 45 degree angle.
If a rent control is imposed in a market, we can conclude?
Select one:
a. A minimum price had been established in that market.
b. A surplus will occur in the market.
c. A shortage will occur in the market.
d. The market equilibrium price will be lower than the rent controlled price.
e. The rent control will resulted in the quantity supplied of the product equaling the quantity demanded of the product.
Graphically, the producer surplus can be depicted as:
Select one:
a. The entire area beneath the supply curve.
b. The entire area beneath the demand curve.
c. The area beneath the demand curve but above the market price.
d. The area above the supply curve but below the market price.
e. The sum of the areas both beneath the demand curve and above the supply curve.
If the percentage change in price equals 2% and the percentage change in quantity supplied equals 5%, the value of the price elasticity of supply will equal:
Select one:
a. -.25.
b. 25.
c. 2.5.
d. .4.
e. .33.
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