1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is upward sloping d) Unitary elastic demand curve 2) A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should a) Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b) Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c) Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d) Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows 3) Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. Based on this information, the demand for Jim's product is a) Elastic b) Unitary elastic c) Inelastic d) Hard to determine