If a good is a necessity, demand for the good is more likely to be:

a.

elastic

b.

inelastic

c.

horizontal

d.

unit elastic

Suppose that, as the price of Y falls from $2.00 to $1.90, the demanded quantity of Y increases from 110 to 118. It can be concluded that the price elasticity of demand using the mid-point method is:?

a.

?-4.00.

b.

-2.09.

c.

-?3.94.

d.

-1.37.

In which of the following instances will total revenue increase??

a.

Prices rise and demand is elastic.

b.

Price rises and demand is inelastic.

c.

Prices rise and supply is elastic.

d.

Prices fall and demand is inelastic.

Quantity of output (# of cookies Total product curve per hour Quantity of input (# of workers)