A: Inelastic 4∆Qd5∆P❑⇒Ed<1(c) Price falls by 6%, and quantity demanded does not change.A: Perfectly Inelastic 0∆Qd6∆ P❑⇒Ed=0(d) Price rises 2%, and quantity demanded falls by 1%.
5. Q: For each of the following, identify whether total revenue rises, falls, or remains constant:(a) Demand is inelastic and price falls⇒P↓❑⇒TR↓
❑(b) Demand is elastic and price rises.
(c) Demand is unit elastic and price rises.A: Total Revenue remains constant, Ed=1❑⇒P↑❑⇒´TR(d) Demand is inelastic and price risesA: Total Revenue rises, Ed<1❑⇒P↑❑⇒TR↑(e) Demand is elastic and price falls.A: Total Revenue rises, Ed>1❑⇒P↓❑⇒TR↑