Question

1. If the price elasticity of demand for a good is 3. Then total revenue will increase in price of the good raises. T or. F

2. Normative statements are objective while positive statements are subjective. T or F

3. Governments want to implement a price hike policy to significantly reduce the consumption of cigarettes. This policy will be effective if demand is inelastic. T or F

4. When demand is inelastic, an increase in price will lead to an increase in total revenue for the product. T or F

Answer 1

1) If the demand is elastic then an increase in price will decrease total revenue - False

2) False, its the other way

3) To reduce consumption, the demand has to be elastic- False

4) When the demand is inelastic, an increase in price increases total revenue -True