• Question How do price and total revenue relate? ANSWER If an increase in the price of peanut butter causes a decline in the demand for jelly, then? -The goods are complements because? ANSWER If a decrease in the price of one good causes a decline in the demand for another good, then? -The goods are substitutes because? ANSWER.
• What is the Price Elasticity of Demand for bread ?

Solution:

40/220 2/19 =

40/220 * 19/2= 760/ 440

760/440 = 1.7 the price is elastic because? ANSWER

What is the Price Elasticity of Demand for cookies?

Solution: 120/340 30/55=

120/340 * 55/30= 6,600/10,200

6,600/ 10,200 = 0.64 the price is inelastic because? ANSWER Normal Good

Something that people will buy more of as their incomes increase Ques-If a good is normal, then the income elasticity of demand for that good is? Ans-Positive because? ANSWER Inferior Good Something that people will by less of as their incomes increase Ques-If a good is inferior,then the income elasticity of demand for that good is? Ans-Negative because? ANSWER