20180320221434homework_4.docx - NAME SCORE 100 Note This...

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NAME: SCORE: / 100 Note: This homework is to be submitted through BlackBoard “Assignment & Projects” links. Part I Multiple Choice Questions 1. (2 points) If the demand curve for oranges is a downward sloping straight line, then A. the elasticity exceeds 1.00 at all prices. B. the elasticity is less than 1.00 at all prices. C. the elasticity equals 1.00 at all prices. D. the elasticity decreases as the price falls and quantity increases. 1. 2. (2 points) If the demand curve for a good is a downward sloping straight line, then at which of the following prices is demand most elastic? A. $1/unit B. $2/unit C. $3/unit D. It is impossible to determine at which price the demand will be most elastic without more information. 2. 3. (2 points) 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 A. price elasticity of demand for Netflix subscription is inelastic.
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