Along unit elastic demand curve-market price increase

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Reference no: EM13832688

1. along a unit elastic demand curve, if the market price increases then

a. total revenue will remain the same

b. total revenue will increase

c. total revenue will be zero

d. total revenue will decrease

e. total cost will remain the same.

2. a good economic model should

a. present normative, not positive economic analysis

b. be a complete and accurate description of the real world.

c. be as complicated as possible

d. give the policy recommendation favored by the reasearcher

e. accurately explain or predict some aspect of the real world.

3. a unit elastic supply curve must

a. none of the answers are correct

b. be vertical

c. be horizontal

d. be a straight line out of the origin

e. be curved.

4. for a straight line demand curve, price elasticity of demand near the "choke price" where quantity demanded approaches 0 approaches

a. it depends on the price where quantity equals zero (vertical intercept)

b. zero

c.1

d. the slope of the demand curve

e. infinity

5. if two goods are substitutes, their corss-price elasticity will be

a. zero.

b. negative

c. positive

d. 1

6. alyssa rents 5 movies per month when the price is $3 each and 7 movies per month when the price is $2.50. this is the

a. law of supply

b. actions of an irrational customer

c. law of demand

d. law of price.

Reference no: EM13832688

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