12 If demand is such that P=40-2Q then

Select one:

A = 40 4

B = 40 2^2

C = 40

13 What is true at the quantity where total revenue is maximized?

Select one:

a. Demand is inelastic.

b. MR is positive

c. MR is negative

d. The elasticity value = 1

14 "Every company needs to worry about a recession." This statement should be modified because

Select one:

a. companies that sell inferior goods (negative income elasticity) will likely enjoy more sales during a recession with falling incomes.

b. companies with a negative cross-price elasticity will likely enjoy more sales because recessions do not affect the sales of complementary products.

c. companies that sell goods with a high own-price elasticity of demand will likely enjoy more sales as their prices rise during a recession.

d. companies that sell normal goods will likely enjoy more sales during a recession with falling incomes

16 In a simple time-series regression that you've run, where sales were linearly related to time t, the estimated t coefficient is negative and statistically significant. This suggests that as time goes on, sales are expected to increase but not as quickly as they've increased in the past.

Select one:

True

False