If the price of chocolate-covered peanuts decreases from $1.10 to $0.90 and the quantity demanded does not change, this indicates that, if other things are unchanged, the price elasticity of demand is:

Select one:

a.

0.

b.

-0.5.

c.

-1.

d.

-2.

If the price elasticity of demand is found to be -3/4, then demand is:

Select one:

a.

price inelastic.

b.

price elastic.

c.

unit price elastic.

d.

positively sloped.

If total revenue goes down when price falls, the price elasticity of demand is said to be:

Select one:

a.

price inelastic.

b.

unit price elastic.

c.

price elastic.

d.

positive.

The demand for agricultural output is price inelastic. This means that if farmers, taken collectively, have a bumper crop, they will experience:

Select one:

a.

lower prices, greater quantities sold, and lower incomes.

b.

higher prices, greater quantities sold, and higher incomes.

c.

lower prices, quantities sold, and incomes.

d.

higher prices, quantities sold, and incomes.

Exhibit: The Demand for Bungalow Bob's Bagels Price $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 Quantity per period 30 40 50 60 70 80