1. If O.P.E.C. increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is: a)Relatively elastic b)Relatively inelastic c)Perfectly elastic c) Perfectly inelastic
2. The Cross-price-elasticity of demand for coffee and tea is likely to be 1) Greater than zero 2) Less than zero 3)Zero 4) Infinity
3. If the income elasticity of a particular good is negative 0.2, it would be considered 1) a superior good 2) a normal good 3) an inferior good 4) an elastic good
4. If the price of an ipad is increased and total revenue received from the sale of this ipad increases, then the price elasticity of demand for the ipad is: a) elastic. b) inelastic. c) unitary. d) None of the above.