B. Short-Answer Questions 1. How could a good such as a new mid-priced car be both an inferior good and a normal good? . Self-Test A. True/False Questions 1. The demand for Amoco gasoline is more elastic than the demand for gasoline in general. 2. A seller facing an elastic demand curve will experience a drop in total revenue if he raises price. 3. The longer the time period, the more elastic is the demand for a good or service, all else equal. .4. A normal good is one for which the income elasticity is greater than one. 5. A good perceived by the consumer to be a necessity will tend to have an elastic demand. 6. For a good with a price elasticity of demand of 0.8, an increase in price will cause total consumer spending on the good to rise. Elasticity tends to be constant along a straight-line demand curve. 8. The major problem facing agriculture in the U.S. today is the slow pace in implementing necessary technological changes in the production and distribution of food