1.If firms receive the same amount of revenue selling a given product regardless of the price of the product, then the demand for the product is:

Group of answer choices

unit elastic

perfectly elastic

We don't have enough information to say anything about elasticity.

perfectly inelastic

2.A tariff imposed by the U.S. government on shrimp imported from Vietnam would:

Group of answer choices

increase producer surplus of producers of shrimp in the U.S.

increase consumer surplus of consumers of shrimp in the U.S.

increase both consumer surplus and producer surplus of consumers and producers of shrimp in the U.S.

decrease producer surplus of producers of shrimp in the U.S.

3.The larger the coefficient of price elasticity of demand for a product, the

Group of answer choices

smaller the resulting price change for an increase in supply.

larger the resulting price change for an increase in supply.

more total revenue increases with an increase in the price of the product.

less competitive will be the industry supplying that product.

4.Suppose that the cross-price elasticity of demand for Good X with respect to Good Y is 1.2 and that with respect to Good Z is -0.3. This implies:

a.Good Y and Good Z are substitutes.

b.Good X and Good Z are complements.

c.Good X and Good Z are substitutes.

d.Good X and Good Y are complements.

5.2.Which of the following is not characteristic of the demand for a commodity that is elastic?

Group of answer choices

Total revenue increases if price is increased.

Buyers are relatively sensitive to price changes.

Total revenue decreases if price is increased.

The relative change in quantity demanded is greater than the relative change in price.