1. Desktop computers have a price elasticity of demand of 2. What type of demand curve does this correspond to?

It always equals 0 There is a rise in consumer surplus as buyers pay higher prices, increasing overall welfare. None of the above. There is a fall in consumer surplus as buyers are leaving the market and the remaining buyers pay a higher price.

2. Alan is a freelance sports journalist and is concerned about the sports magazine industry. Advertising revenue for sports publications has gone down recently and at the same time more people are using Twitter rather than buying magazines. What do you expect to happen to price and quantity of sports magazines?

P rises, but effect on Q is ambiguous P falls, but effect on Q is ambiguous An increase in consumers' income A decrease in the price for car parts and accessories

Give explanation