If the demand for a product is highly Inelastic, that implies the following, EXCEPT:
Question 1
A. That the price elasticity of demand is lower than one in absolute value.
B. That percentage change in quantity is smaller than percentage change in price
C. That an increase in price will decrease total revenue.
Question 2
The following are correct description for special cases of Linear Demand, EXCEPT:
A. A linear demand has price elasticities that range from zero to plus infinity.
B. The Linear Demand has Elasticity equal to one an the point where the Marginal Revenue equals ONE.
C. For a Linear Demand, revenue is maximized when Price Elasticity equals ONE.
Question 3
If a Cobb-Douglas Demand has price elasticity equals to one in absolute terms, it means:
A. Consumption will increase in the same proportion as the increase in price.
B. Total Revenue will stay the same even if price increases or decreases
C. Total Revenue will always increase in one percent if price increases in one percentage point.