econ 3.9 quiz

a service station owner in Staten Island, New York, was worried that raising the price of gasoline would cause the quantity demanded to fall by so much that he would be in a worse situation than if he did not raise the price. If raising the price of gasoline would cause the owner to receive less total revenue from the sale of gasoline is

elastic

when audrina raised the price of her homemade cookies, her total revenue increased. this suggests that the demand for Audrina's cookies is elastic

false

if tolls on a toll road can be raised significantly before commuters will consider using a free alternative, demand for using the toll road must be

inelastic

opera estate girl's school is considering increasing its tuition to raise revenue. If the school believes that raising tuition will increase revenue it is assuming that the demand for attending the school is

inelastic

Which of the following statements is true? - if the price of a good is raised and total revenue does not change, demand is perfectly elastic - if the price of a good is lowered and total revenue increases, demand is inelastic - if the price of a good is lowered and total revenue decreases, demand is elastic - if the price of a good is raised and total revue increases, demand is inelastic

its NOT: if the price of a good is lowered, and total revenue decreases

total revenue equals

price per unit times quantity sold

suppose when nablom's bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue?

sales revenue decreased

which of the following statements is true? - whenever a firm increases its quantity sold its revenue will increase. - total revenue will equal zero when the demand for a product is unit elastic. - when a firm lowers its price its total revenue may either increase or decrease. - whenever a firm raises its price its total revenue will increase

when a firm lowers its price its total revenue may either increase or decrease.

if the demand for a product is perfectly inelastic, a decrease in the price of the product

will decrease total revenue