Question

15.Demand tends to be more elastic when

A. price is high, and more inelastic when price is low.

B. price is low, and more inelastic when price is high.

C. the demand curve is very steep.

D. the quantity demanded is larger.

16.If increasing the admission charge for National Parks increases the National Park Service’s total revenue, then the demand for National Park visits is

A.inelastic.

B.elastic, but not perfectly elastic.

C.perfectly elastic.

D.a perfectly horizontal line.

20. When consumers’ incomes decline during a recession, consumers who normally never purchase instant coffee start to do so, while reducing their consumption of fancier forms of coffee. Therefore, instant coffee

A.is a necessity.

B.has a negative income elasticity of demand.

C.has an income elasticity of demand greater than zero but less than one.

D.is normal.

Answer 1

Ans) the correct option is a) price is high, and more inelastic when price is low.

Ans) the correct option is A.inelastic.

Ans) the correct option is b) has a negative income elasticity of demand.