1.At point A on a demand curve, the price is $10, and the quantity demanded is 100. At point B, the price is $12 and the quantity demanded is 80. What is the price elasticity of demand between points A and B?

2.Explain whether total revenue rises, falls, or remains constant for each of the following:

a.Demand is inelastic, and price falls.

b.Demand is unit -elastic, and price rises.

3.As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units to 114 units. What is the cross elasticity of demand? Are X and Y substitutes or complements? Explain.

4.The quantity demanded of good X rises from 130 to 145 units as income rises from $2,000 to $2,500 a month. What is the income elasticity of demand?

5.The marginal utility of good A is 4 utils, and its price is $2, and the marginal utility of good B is 6 utils, and its price is $1. Is the individual consumer maximizing (total) utility if she spends a total of $3 by buying one unit of each good? Show the calculation and explain.