Question

27.

A recent news broadcast made the following statement: “An increase in the price of coffee has caused a decrease in the demand for coffee.” Would an economist agree with this statement? (Carefully look at the wording.)

Group of answer choices

No, an economist would not agree with this statement.

Yes, an economist would agree with this statement.

28.

In which of the following cases will a firm’s total revenue decrease? There is more than one correct answer to this question. You must mark all of the correct answers to receive full credit for this question.

Group of answer choices

price increases and demand is inelastic

price decreases and demand is inelastic

price decreases and demand is elastic

price increases and demand is perfectly inelastic

price increases and demand is elastic

29.

A life-saving medication that has no substitutes is likely to have a price elasticity of demand that is less than one in absolute value.

Group of answer choices

True

False

30.

In a graph of a production possibility frontier, price is indicated on the vertical axis and quantity is shown on the horizontal axis.

Group of answer choices

True

False

Answer 1

27. No, an economist would not agree with this statement.
Change in quantity demanded due to change in price is a movement along the demand curve, not a change of the demand curve.

28. price increases and demand is inelastic
price decreases and demand is elastic
When demand is inelastic, an increase in price leads to higher total revenue.
when demand is elastic, a decrease in price leads to higher total revenue.

29. True
It woudl have inelastic demand.

30. False