Question 1. If a 1% fall in the price of a product cause the quantity demanded of the product to increase by 2%, demand is
(a) inelastic
(b) elastic
(C) unit elastic
(D) perfectly elastic
Question 2. The minimum acceptable price for a product that Juan is willing to receive is $20. It is $15 for Carlos. The actual price they receive is $25. What is the amount of the producer surplus for Juan Carlos combined?
Question 3. Compared to the lower-right portion, the upper-left portion of most demand curves tends to be
(a) more inelastic
(b) more elastic
(c)unit elastic
(d) perfectly inelastic
Question 4. Katie is willing to pay $50 for a product and Tom is willing to pay $40. The actual price that they have to pay is $30. What is the amount the consumer surplus for Katie and Tom combined. $30, $40, $50 or $60
Question 5. If when the price of a product rises for m$1.50 to $2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient, using the midpoint formula is?