1. If demand is elastic, how will an increase in price change total revenue? Explain.

2. If a fixed quantity of good is available, and no more can be made, what is the price elasticity of supply?

3. A price change causes the quantity demanded of a good to decrease by 30%, while the total revenue of that good increases by 15%. Is the demand curve elastic or inelastic? Explain.

4. Explain why the following might be true: a drought around the world rises the total revenue that farmers receive from the sale of grain, but a drought only in Kansas reduces the total revenue that Kansas farmers receive.