1)To determine the price elasticity of demand, we compare the percentage change in the quantity demanded to the percentage change in the price. Select one: True False 2) When the percentage change in the quantity demanded exceeds the percentage change in price, then demand is unit elastic. Select one: True False 3) When hamburger is $3 per pound, Ms. Rush buys 6 pounds. When hamburger is $2 per pound, Ms. Rush buys 10 pounds. Ms. Rush's demand at the midpoint between these two prices is inelastic. Select one: True False 4) Total revenue increases if the price of the good rises and demand is inelastic. Select one: True False 5) If the cross elasticity of demand between Coke and Pepsi is 2.02, then Coke and Pepsi are substitutes Select one: True False 6) An inferior good a product for which demand increases when income decreases, and demand decreases when income increases Select one: True False 7) Profit as calculated by accountants and economic profit are not necessarily equal Select one: True False 8) A firm faces a small number of competitors. This firm is competing in monopolistic competition market Select one: True False 9) An industry with a large number of firms, differentiated products, and free entry and exit is called oligopoly Select one: True False 10) A cartel is an agreement among firms to limit output, raise prices, and increase economic profit. Select one: True False 11) The price elasticity of demand is a measure of . Select one: a. the equilibrium price of a product. b. buyers' responsiveness to changes in the price of a product c. whether a product is a substitute or a complement d. the amount of a product purchased when income increases. 12) If the demand for a good is elastic, then Select one: a. a change in the quantity demanded is smaller than the change in price b. a change in price leads to a smaller percentage change in the quantity demanded. c. people do not change the quantity they demand when the price of the good changes. d. people substantially decrease the quantity of the good they buy if its price increases by a small percentage