69. If price is cut and demand is elastic, then a. total revenue will fall. b. total revenue will not change. c. quantity demanded will fall. d. total revenue will rise. e. any of the above. 70. When demand is inelastic, a. price and revenue move in opposite directions. b. price and revenue are not related. c. price and quantity demanded move in opposite directions. d. price and revenue move in the same direction. e. none of the above. 71. The presence of substitute goods will tend to make demand more a. inelastic. b. unit elastic. c. elastic. d. vertical. e. (a) or (b) above. 72. A manager can determine if her product is viewed as a normal good or an inferior good by considering a. price elasticity. b. cross elasticity. c. advertising elasticity. d. income elasticity. e. (b) and (d) above. 73. A luxury good has a. a negative income elasticity. b. a cross elasticity of one. c. a very low income elasticity. d. a negative price elasticity. e. a very high income elasticity. 74. Cross elasticity tells a manager that the product they produce is a. a countercyclical good. b. a cyclical good.
69. If price is cut and demand is elastic, then a. total revenue will fall. b. total revenue will not change. c. quantity demanded will fall. d. total revenue will rise. e. any of the above. 70. When demand is inelastic, a. price and revenue move in opposite directions. b. price and revenue are not related. c. price and quantity demanded move in opposite directions. d. price and revenue move in the same direction. e. none of the above. 71. The presence of substitute goods will tend to make demand more a. inelastic. b. unit elastic. c. elastic. d. vertical. e. (a) or (b) above. 72. A manager can determine if her product is viewed as a normal good or an inferior good by considering a. price elasticity. b. cross elasticity. c. advertising elasticity. d. income elasticity. e. (b) and (d) above. 73. A luxury good has a. a negative income elasticity. b. a cross elasticity of one. c. a very low income elasticity. d. a negative price elasticity. e. a very high income elasticity. 74. Cross elasticity tells a manager that the product they produce is a. a countercyclical good. b. a cyclical good.
2076_526955_1_Multiple-Choice-Take-home-Test-1-.docx