The price elasticity of demand is:

Question 6 options:

	always positive.
	always greater than 1.
	usually equal to 1.
	always negative.

Question 7 (10 points)

A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is:

Question 7 options:

	greater than zero but less than 1.
	equal to 1.
	greater than 1 but less than 3.
	greater than 3.

Question 8 (10 points)

Saved

If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is:

Question 8 options:

	unstable.
	price inelastic.
	price elastic.
	unit price elastic.

Question 9 (10 points)

Saved

The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is:

Question 9 options:

	total revenue.
	production possibilities.
	elasticity.
	slope.

Question 10 (10 points)

Saved

The price elasticity of a good will tend to be greater:

Question 10 options:

	the longer the relevant time period.
	the fewer number of substitute goods available.
	if it is a staple or necessity with few substitutes.
	All of the above are true.