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1. At $30 a case, consumers demand 200 cases of beer at the distributor. When the price increases to $40 a case, consumers demand 160 cases of beer. The price elasticity of demand for beer would be

A. Inelastic

B. Elastic

C. Unit Elastic

D. The answer cannot determine with the information given.

2. If a price reduction reduces a firm's total revenue:

A. the product is an inferior good.

B. the demand for the product is elastic in this price range.

C. in this price rage the elasticity coefficient of demand is less than 1.

D. this price decline will increase the firm's profits.

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Deanna Hettinger
Deanna HettingerLv2
29 Sep 2019
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Related questions

Suppose that ABC Beer Brewer faces a linear demand curve and that the current price for its beer is set at a point where the price elasticity is 1.60. If ABC Beer Brewer increases the product price:

A) the demand becomes more elastic and total revenue increases.

B) the demand becomes less elastic and total revenue increases.

C) the demand becomes less elastic and total revenue decreases.

D) the demand becomes more elastic and total revenue decreases.

E) the demand becomes more elastic and total revenue remains the same.

1. The concept of price elasticity of demand measures:

a. the slope of the demand curve.

b. the number of buyers in a market.

c. the extent to which the demand curve shifts as the result of a price decline.

d. the sensitiveness of quantities demanded to price changes.

2. When the percentage change in price is less than the resulting percentage change in quantity demanded:

a. demand is elastic.

b. demand is inelastic.

c. demand is unit elastic.

d. none of the above.

3. The elasticity of demand:

a. will be the same at each price-quantity combination on a stable demand curve.

b. tends to be elastic in high-price ranges and inelastic in low-price ranges.

c. tends to be inelastic in high-price ranges and elastic in low-price ranges.

d. is infinitely large for a perfectly inelastic demand curve.

4. Suppose that as the price of Y falls from $2.00 to $1.80 the quantity of Y demanded increases from 110 to 121. It can be concluded that the price elasticity of demand is: _______.

5. Total revenue rises as the price of a good increases if price elasticity of demand is:

a. unitary elastic

b. perfectly inelastic.

6. The demand for such products as salt, bread, and electricity tend to be:

a. relatively price elastic.

b. relatively price inelastic.

c. of unit price elasticity.

d. perfectly price elastic.

*Please provide the answer but also explain what is inelastic, elastic,unitary elastic

*Please explain elasticity of demand values

*Please explain what is an inferior good, how to obtain the answer.



1) If the price of gasoline increases 10% and quantity demanded decreases by 5%, then the demand curve for gasoline is:

A) inelastic.

B) elastic.

C) unitary elastic.

D) a perfect substitutable good.

2) If a good has an elasticity of demand of 21, then we say the good is:

A) highly inelastic.

B) unitary elastic. C) not elastic.

D) highly elastic.

3) For inferior goods, when an individual's income decreases, quantity demanded for these goods increases.

A) True

B) False

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