Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is . What happens to sales revenue if the restaurant increases its price by 5 percent?

Sales revenue falls by less than 5 percent.

Sales revenue remains unchanged.

Sales revenue falls by 100 percent.

It cannot be determined without information on prices.

2 Assume that a 2 cent per ounce percent soda tax led to a large increase in its price and only a small decrease in the quantity of soda demanded. Economic analysis would lead one to conclude that

soda should be taxed because the benefits of the tax would exceed the costs.

soda should not be taxed because the benefits are uncertain.

soda should not be taxed on ethical grounds since ethical benefits and costs can't be measured.

the benefits of taxing soda is a normative issue. Economic analysis can be used to contribute to discussion of this issue but cannot decide it.

3.The marginal revenue product of labor is defined as

the change in the firm's revenue as a result of selling one more unit of output.

the change in the firm's output as a result of hiring one more worker.

the change in the firm's profit as a result of hiring one more worker.

the change in the firm's revenue as a result of hiring one more worker.

4.Customer discrimination occurs when

a firm pays workers different wages based on irrelevant factors.

customers refuse to buy products produced by a racially diverse workforce.

customers refuse to buy products they believe to be of poor quality.

workers refuse to serve customers of a different race.