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1. Suppose Amanda Herman finds that her total spending on compact dics remaing same after the price of compact fall, other things equal. Which of the followin is true about Amanda's demand for compact dics with the price change. (a) It is perfectly price inelastic (b) unit price elastic (c) it is perfectly price elastic (d) It increased in response to price change2. If a business increased the price of its products form $7 to $8 when the price elasticiy of dmand was inelastic, then(a) total revenue decreased (b) total revenue increase (c) total revenue remain unchange (d) total revenue were perfectly inelastic3. In which range of the demand schedule is demand price inelastic
Price Quantity Demand11 509 1007 2005 3003 400(a) $11-9 (b) $9-7 (c) $7-5 (d) $5-3
4. From a time perspective, the demand for most product is(a)less elastic in the short run and unit elastic in the long run(b) less elastic in the long run and unit elastic in the short run(c) more elastic in the shor run than long run(d) more elastic in the long run than in the short run7. For which product is teh income elasticity of demand most likely toe be negative (a) automobile (b) bus tickey (c) computers (d) tennis racket
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