10 following an increase in the selling price of its

10. Following an increase in the selling price of its product,
a. the firm’s total revenue will always increase.
b. the firm’s total revenue will increase is demand is inelastic.
c. the firm’s total revenue will increase if demand is unit elastic.
d. the firm’s total revenue will increase if demand is elastic.
11. Following a decrease in the selling price of its product,
.

12. Along a demand curve with a constant slope,
13. If the price elasticity of demand for beach towels is 1.00 between a price of $12 and
a price of $15, then the demand is _____ and total revenue will ________ if the price of
beach towels increases from $12 to $15.
14. Demand for a good will be relatively more elastic when
a. consumers can easily find substitute goods.
b. the good is a necessity.
c. spending on the good is a low portion of consumers’ incomes.
d. the time period allowed for response is shorter.
15. The supply of a good is relatively more elastic when