20180325041250please_solve_all_the_problems.docx - Surname...

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Surname 1 Name: Instructor: Course: Date: Part I Multiple Choice Questions 1. If the demand curve for oranges is a downward sloping straight line, then the elasticity equals 1.00 at all prices. 2. If the demand curve for a good is a downward sloping straight line, then at which of the following prices is demand most elastic? $3/unit. 3. Netflix is the largest online DVD rental service offering flat rate rental-by-mail and online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by 10 percent and observe their total revenues increase. Based on this information, the price elasticity of demand for Netflix subscription is elastic. 4. The Country Music Hall of Fame is considering lowering admission prices to increase gross revenue. This plan will work if the price elasticity of demand for tickets is elastic.
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Surname 2 5. The figure above represents the behavior of total revenue as price falls along a straight-line demand curve. Unit elasticity of demand occurs at point h.
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