Question

please answer ,question 8,9,10,11,12.

8. When the percentage change in price is greater than the resulting percentage change in quantity demanded A) a decrease in price will increase total revenue B) demand may be either elastic or inelastic. C) an increase in price will increase total revenue. D) demand is elastic. 9. Suppose the price elasticity coefficients of demand are 1.43, 0.67, 1.11, and 0.29 for products W, X, Y, and Z respectively. A 1 percent decrease in price will increase total revenue in the case(s) of A) W and Y. B) Y and z. C) X and Z. D) Z and W. 10. If the demand for farm products is price inelastic, a good harvest will cause farm revenues to: A) increase. B) decrease. C) be unchanged. D) either increase or decrease, depending on what happens to supply. 11. If the University Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts, the Society is assuming that the demand for tickets is: A) parallel to the horizontal axis. B) shifting to the left. C) inelastic. D) elastic. 12. Which of the following is correcf? A) If demand is elastic, an increase in price will increase total revenue. B) If demand is elastic, a decrease in price will decrease total revenue. C) If demand is elastic, a decrease in price will increase total revenue. D) If demand is inelastic, an increase in price will decrease total revenue. Page 2

Answer 1

8. C
(Demand is inelastic as per the given situation so an increase in price, increases the total revenue.)

9. A
(As for W and Y, demand is elastic, so decrease in price will increase revenue.)

10. B
(Good harvest will increase supply which will decrease the price. So, due to inelastic supply, revenue will decrease.)

11. C
(More funds will be raised if demand is inelastic.)

12. C
(When demand is elastic, decrease in price will increase the total revenue.)