A 2 percent fall in price increases total revenue by one-half percent. We can conclude that...

1. Suppose = -0.8. If price falls by five percent we can conclude that ?D a. quantity demanded will decrease by six percent. b. consumer expenditure will decrease by one percent c. quantity demanded will increase by four percent. d. demand for the good is elastic at the current price. e. (b) and (c) are correct

2. A 2 percent fall in price increases total revenue by one-half percent. We can conclude that a. the elasticity of demand is -1.25. b. the quantity demanded increases by five percent c. consumer expenditure increases three percent. d. demand is inelastic at the current price. . e. All of the above are correct. 3 . Hawaii Air charges P0 = $100 per round-trip between Lihue and Honolulu. At this price, Q0 = 400 trips are demanded . If the elasticity of demand = -