Explain he price elasticity of demand for popular software

Question

1. When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is

1. unitary elastic.
2. inelastic.
3. elastic.
4. cross-elastic.

2. Total revenue falls as the price of a good is raised, if the demand for the good is

1. elastic.
2. unitary elastic.
3. perfectly elastic.
4. inelastic.

3. You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:

1. decrease the price of the software.
2. increase the supply of the software.
3. increase the price of the software.
4. hold the price of the software constant.

4. If the demand for a product is elastic, the

1. a higher tax on the product will generate less tax revenue.
2. a higher tax on the product will generate more tax revenue.
3. total revenue will remain constant as price increases.
4. total revenue will decrease as price decreases.

5. Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an

1. elastic demand to see movies in the evening.
2. inelastic supply of movies in the evening.
3. inelastic demand to see movies in the afternoon.
4. elastic demand to see movies in the afternoon.