When elasticity is 0.1, demand is
Multiple Choice
- elastic.
- inelastic.
- unit elastic.
- undefined
If your income goes up by 10 percent and you increase the number of pedicures you receive by 5 percent, then your demand for pedicures is
Multiple Choice
- income elastic.
- income inelastic.
- income unit elastic.
Advertisers try to
Multiple Choice
- increase the demand for their product and make it more elastic.
- increase the demand for their product and make it less elastic.
- decrease the demand for their product and make it more elastic.
- decrease the demand for their product and make it less elastic.
If demand is inelastic and the price is reduced, total revenue will
Multiple Choice
- rise.
- fall.
- stay the same.
- possibly rise or possibly fall.
If the elasticity of demand is 10, a 1 percent increase in price will reduce quantity demanded by
Multiple Choice
- 0.1 percent.
- 1 percent.
- 10 percent.
- 100 percent.
f you buy 10 percent more coffee in response to a 20 percent increase in income, your income elasticity for coffee is
Multiple Choice
- 0.5.
- 1.0.
- 2.0.
- 0.0.
The imposition of a tax on a good or service would be represented as
Multiple Choice
- an increase in demand.
- an increase in supply.
- a decrease in demand.
- a decrease in supply.
A tax increase is usually borne
Multiple Choice
- entirely by the seller.
- entirely by the buyer.
- partially by the seller and partially by the buyer.
