The price elasticity of demand for tickets to local baseball games is estimated to be equal to 1.2. What will happen if the management raises ticket prices?

	Revenue will go up.
	Revenue will go down.
	Profits will fall.
	nothing. Fans will always come.

Households may invest in ______________ to ____________ .

	tangible assets; to maintain liquidity
	stocks; guarantee a consistent return
	bonds; guarantee capital gains
	mutual funds; minimize risk

If demand is inelastic and firms ___________ their prices, their total revenue will___________.

	raise; fall
	raise; rise
	lower, rise
	lower. stay the same

An inferior good is __________________.

	a good that nobody wants
	cheap
	a good for which the income elasticity of demand is positive
	a good for which the income elasticity of demand is negative

The price elasticity of supply measures the:

	responsiveness of quantity supplied to a change in price.
	responsiveness of price to a change in quantity supplied.
	responsiveness of quantity supplied to a change in consumer income.
	responsiveness of quantity supplied to a change in quantity demanded.

Which of the following government policies will result in a rightward shift of the market supply curve for labor?

	an increase in unemployment benefits
	an increase in childcare benefits
	an increase in the educational requirements for teachers
	a reduction in income tax rates

Supply is said to be___________when the quantity supplied is not very responsive to changes in price.

	inelastic
	elastic
	available
	limited