1) Taco Bell firm raises the price of its tacos. The price elasticity of demand for Taco Bell tacos equals 5.0. What happens to the Taco Bell's total revenue?
A) nothing
B) it increases
C) it decreases
D) it becomes negative
2) Which of the following statements is correct for the price elasticity of demand along a linear, downward-sloping demand curve?
A) At low price, demand is elastic but at high prices demand is inelastic.
B) The price elasticity of demand is constant because the slope is constant
C) At high prices, demand is elastic but at low prices demand is inelastic