5) If the price elasticity of demand for a product is equal to -0.4, then a 25 percent decrease in price will increase quantity demanded by A) 0.1% B) 10% C) 2.5% D) 62.5% 6) Suppose that cans of CELSIUS energy drink have unit elastic demand. Initially, the price is $2 per can and quantity demanded is 100. Price increases to $3 per can. What is the new quantity demanded? A) 50 B) 66.7 C) 100 D) 150 7) The cross-price elasticity of milk and apple juice cookies is 2. What happens to the quantity of apple juice if the price of milk goes up by 10% A) Decreases 20% B) Increases 20% C) Decreases by 0.4% D) Increases by 0.4% 8) The cross-price demand elasticity of baseballs and fish sticks is equal to zero. The price of baseballs goes up. Which of the following statements accurately describes what happens: A) Consumption of fish sticks goes up, because the goods are compliments B) Consumption of fish sticks goes up, because the goods are substitutes C) Consumption of fish sticks goes down, because the goods are compliments D) Consumption of fish sticks is unchanged 9) Suppose that supply slopes up (as usual), and suppose that demand is perfectly elastic. Initially, the price is $12, Due to an increase in labor costs, the marginal cost of production increases by $1 per unit. What will the new equilibrium price be? A) SO B) $11 C) $12 D) $13 10) Alexandra's income increases by 10%. As a result, her consumption of lemonade increases by 5%. Which of the following statements is true: A) Income elasticity of demand is positive, so lemonade is a normal good B) Income elasticity of demand is negative, so lemonade is an inferior good C) Income elasticity of demand is positive but less than one, so lemonade is an inferior good D) Price elasticity of demand is -0.5