18 16 - 14 12 10 8 DemandA DemandB 9 12 15 18 21 24 27 30 Quantity 19. Refer to Figure 6-11. Which of the following statements is not correct? a. A government-imposed price of $8 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B. b. A government-imposed price of $10 would be a binding price ceiling if market demand is either Demand A or Demand B. C. A government-imposed price of $4 would be a binding price ceiling if market demand is either Demand A or Demand B. d. A government-imposed price of $10 would be a binding price floor if market demand is Demand A and a non- binding price ceiling if market demand is Demand B 20. If demand is price inelastic, then when price rises, total revenue a. will fall. b. will rise. will remain unchanged. d. may rise, fall, or remain unchanged. More information is need to determine the change in total revenue with certainty. 21. Last year, Jim bought 8 tickets to sporting events when his income was $30,000. This year, his income is $33,000, and he purchased 10 tickets to sporting events. Holding other factors constant and using the midpoint method, it follows that Jim's income elasticity of demand is about a. 0.43, and Jim regards tickets to sporting events as inferior goods. b. 0.43, and Jim regards tickets to sporting events as normal goods. c. 2.33, and Jim regards tickets to sporting events as inferior goods. 33