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True or False Quiz
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1
A firm’s total revenue is equal to price times demand.
A)True
B)False
2
The price elasticity of demand coefficient is, technically, always negative, but for convenience economists ignore the minus sign.
A)True
B)False
3
If demand is inelastic and price falls, then total revenue will rise.
A)True
B)False
4
If demand is elastic and price rises, then total revenue will rise.
A)True
B)False
5
If the elasticity of demand is unitary and the price rises, then total revenue will rise.
A)True
B)False
6
A major determinant of price elasticity of demand is the number of complementary products available.
A)True
B)False
7
A straight-line (constant-sloped) demand curve does not imply constant elasticity.
A)True
B)False
8
Supply elasticity is measured by percentage change in quantity supplied divided by percentage change in quantity demanded.
A)True
B)False
9
If cross-elasticity of demand is positive, we could conclude that two products are substitutes.
A)True
B)False
10
If income elasticity is positive, we could conclude that the product in question is an inferior good.
A)True
B)False





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