When elasticity is 0.1, demand is Multiple Choice elastic.inelastic.unit elastic.undefinedIf your income goes up by 10 percent and you increase the number of pedicures you receive by 5 percent, then y

When elasticity is 0.1, demand is

Multiple Choice

• elastic.
• inelastic.
• unit elastic.
• undefined

If your income goes up by 10 percent and you increase the number of pedicures you receive by 5 percent, then your demand for pedicures is

Multiple Choice

• income elastic.
• income inelastic.
• income unit elastic.

Advertisers try to

Multiple Choice

• increase the demand for their product and make it more elastic.
• increase the demand for their product and make it less elastic.
• decrease the demand for their product and make it more elastic.
• decrease the demand for their product and make it less elastic.

If demand is inelastic and the price is reduced, total revenue will

Multiple Choice

• rise.
• fall.
• stay the same.
• possibly rise or possibly fall.

If the elasticity of demand is 10, a 1 percent increase in price will reduce quantity demanded by

Multiple Choice

• 0.1 percent.
• 1 percent.
• 10 percent.
• 100 percent.

f you buy 10 percent more coffee in response to a 20 percent increase in income, your income elasticity for coffee is

Multiple Choice

• 0.5.
• 1.0.
• 2.0.
• 0.0.

The imposition of a tax on a good or service would be represented as

Multiple Choice

• an increase in demand.
• an increase in supply.
• a decrease in demand.
• a decrease in supply.

A tax increase is usually borne

Multiple Choice

• entirely by the seller.
• entirely by the buyer.
• partially by the seller and partially by the buyer.