Figure 46 nce ND Refer to the Figure 46 What happens if the

Figure 4-6 nce ND Refer to the Figure 4-6. What happens if the demand curve shifts from D to D]? a. Firms would be willing to supply less than before. b. People are less willing to buy the product at any price than before. c. People are now more willing to buy the product at any price than before. d. The price of the product has decreased, causing consumers to buy more of the product 10. 11. Why would chocolate chip cookie dough ice cream tend to have very elastic demand? a. because it has many complements b. because the market is broadly defined because there are few substitutes c. d. 12. W because other flavours of ice cream are almost perfect substitutes hen quantity moves proportionally the same amount as price, what is true of demand and its price elasticity? Demand is unit elastic and the price elasticity of demand is o. a. b. Demand is perfectly inelastic and the price elasticity of demand is 1. Demand is perfectly inelastic and the price elasticity of demand is 0. d. c. Demand is unit elastic and the price elasticity of demand is 1. Figure 5-4 Picc Refer to Figure 5-4. If price falls in the C range of the demand curve, what can we expect total revenue to do as one moves down the curve? a. increase b. decrease c. stay the same d. decrease, then increase 13.

Solution

Q10. Answer is b. People are less willing to buy the product at any price than before. Q11. Answer is d. Because other flavors of ice cream are almost perfect substitutes. Q12. Answer is d. Demand is Unit elastic and the price elasticity of demand is 1. Q13. Answer is b. Decrease. Explanation: At point C, lower segment of curve is lower than the upper segment. Hence the elasticity is inelastic. Hence, the total revenue will decrease.