1-How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged

a. Price falls and demand is inelastic. b. Price rises and demand is elastic. c. Price rises and supply is elastic. d. Price rises and supply is inelastic. e. Price rises and demand is inelastic. f. Price falls and demand is elastic. g. Price falls and demand is of unit elasticity

2-ou are chairperson of a state tax commission responsible for establishing a program to raise new revenue through excise taxes. Would elasticity of demand be important to you in determining those products on which excises should be levied? Explain.

3-Explain the two causes of market failures. Given their definitions, could a market be affected by both types of market failures simultaneously?

4-What divergences arise between equilibrium output and efficient output when (a) negative externalities and (b) positive externalities are present? How might government correct these divergences? Cite an example (other than the text examples) of an external cost and an external benefit.

5-How can time be incorporated into the theory of consumer behavior? Explain the following comment: "Want to make millions of dollars? Devise a product that saves Americans lots of time."

6-. Explain:

a. Before economic growth, there were too few goods; after growth, there is too little time. b. It is irrational for an individual to take the time to be completely rational in economic decision making. c. Telling your spouse where you would like to go out to eat for your birthday makes sense in terms of utility maximization.