Question

1)What happens to revenue when a price is increased at a point where demand is elastic?

Group of answer choices

a)revenue decreases

b)revenue will not change

c)revenue decreases after a period of increase

d)revenue increases

2)First-class plane tickets (for personal travel) are a product that has a ____________ demand curve.

Group of answer choices

a)highly elastic

b)unitary elastic

c)very inelastic

d)neither elastic or inelastic

3)Demand is usually ____________ in the short run than in the long run.

Group of answer choices

a)steeper and more elastic

b)steeper and more inelastic

c)flatter and more inelastic

d)flatter and more elastic

Answer 1

a) "A"

When the price is increased in the market the revenue will fall provided the demand is elastic,

b) "C"

Personal air travel has a very inelastic demand curve.

c) "B"

in the short run the demand is usually steeper and more inelastic in the short run than in the long run. in the long run it will be more elastic and flatter.