Question 1

1. For a market with a straight-line, downward-sloping demand curve, the total revenue curve is 
2. A.horizontal. 
3. B.vertical. 
4. C.upward sloping. 
5. D.shaped like an upside-down “U.” 
6. E.U-shaped. 

Question 2

1. The demand for a product is said to be inelastic if total consumer expenditures 
2. A.remain constant as price changes. 
3. B.rise more than price rises as a percentage. 
4. C.fall when price falls. 
5. D.fall when price rises. 
6. E.rise less than price as a percentage. 

Question 3

1. When will an increase in price lead to an increase in total revenue? 
2. A.When demand is elastic 
3. B.When demand is unitary elastic 
4. C.When the cross-price elasticity is negative 
5. D.When demand is inelastic 
6. E.When income elasticity is positive

Question 4

1. Does a tax on sellers affect the demand curve?

1. A.Yes, it shifts to the left by the amount of the tax.
2. B.Yes, it shifts to the right by the amount of the tax.
3. C.Yes, it shifts up by the amount of the tax.
4. D.No, there is change in the quantity demanded, but the demand curve does not move.