Question 1 A price elasticity of demand of -6 means that a 1 percent increase in price will result in a Not yet answered Marked out of 1.00 Select one: P Flag question O a. 6 percent increase in quantity demanded. O b. 6 percent increase in demand. O C. 6 percent decrease in quantity demanded. O d. 6 percent decrease in demand. Question 2 If the demand for a good is perfectly elastic, the demand curve is Not yet answered Marked out of 1.00 Select one: P Flag question O a. upward sloping O b. vertical O c. horizontal O d. downward sloping Question 3 If a firm reduces its price from $5 to $4 will results in an increase in total revenue, then Not yet answered we can conclude that the demand for the good at this price range is Marked out of 1.00 Select one: PFlag question O a. inelastic O b. elastic O c. perfectly inelastic O d. unit elastic Question 4 At a price of $15, the quantity demanded of good A is the same as when the price rises Not yet answered to $16. The demand for good A is Marked out of 1.00 Select one: PFlag question O a. perfectly inelastic. O b. elastic. O c. inelastic. O d. perfectly elastic.Question 5 Demand will be more elastic if Not yet answered Select one: Marked out of 1.00 O a. the shorter the passage of time. PFlag question O b. the harder it is to obtain good substitutes. O c. the price goes down. O d. the larger the proportion of income spent on it. Question 6 The following shows the annual purchases of Good A at different prices. Not yet answered a) Calculate the total revenue at each price (A: 2 marks) Marked out of 8.00 Price Quantity Total Revenue Flag question 10,000 units 3 15,000 2 20,000 a) Refer to the above table. Is the demand for Good A elastic, inelastic, unit-elastic, perfectly elastic, or perfectly inelastic in the price range between $3 and $4? Clearly explain. (A: 3 marks) b) Refer to the above table. Is the demand for Good A elastic, inelastic, unit-elastic, perfectly elastic, or perfectly inelastic in the price range between $2 and $3? Clearly explain. (A: 3 marks) B a) Calculate the total revenue at each price (A: 2 marks) Price Quantity Total Revenue $4 10,000 units 3 15,000 2 20,000Question 7 f the government sets the price of a good above its equilibrium price, this government Not yet answered action acts as Marked out of 1.00 Select one: P Flag question O a. price ceiling O b. price floor O c. equilibrium price O d. excess demand Question 8 A price ceiling is This policy will led to a Not yet answered Marked out of 1.00 P Flag question Select one: O a. legal maximum price set above the equilibrium price; surplus O b. legal minimum price set below the equilibrium price; shortage O c. legal minimum price set above the equilibrium price; surplus O d. legal maximum price set below the equilibrium price, shortage