Question 1: What is the difference between a demand function and a demand curve?
Question 2: How will each of the following affect the position of the demand curve for videocassette recorders?
a. An increase in the price of VCR tapes.
b. A decrease in the price of VCRs.
c. An increase in per capita income.
d. A decrease in the price of movie tickets.
Question 3: If the demand for a product is inelastic, what will happen to total revenue if price is increased? Explain.
Question 4: What signs are the cross elasticities for substitute products? Explain.