Question

Am I right?

A demand curve that is unit elastic everywhere is
Select one:
a. vertical
b. horizontal
c. nonlinear
d. linear and slopes upward
e." linear and slopes downward"

The price of elasticity is important information for firms to know because it helps them determine the effect of price changes on their
Select one:
a. property taxes
b. total revenue
c. "profits"
d. total costs
e. quantity supplied

The total revenue from selling toy trucks would be equal to
Select one:
a. "the price of toy trucks times the price elasticity of demand"
b. the price of toy trucks times the quantity sold
c. average cost times quantity produced
d. the price of toy trucks times the quantity produced
e. the change in quantity sold divided by the change in price

Answer 1

I think the second question should be Total Revenue instead of profit.

Profit is Revenue - Cost, but you don't know what cost is ye.

The third question should be he price times quantity sold.
If you sold 10 diamond pickaxes for $5, that's 10*5 = 50 dollars revenue. (Not profit because profit is revenue - cost)

Answer 2

Thank ye mhchen.

Answer 3

1. E is correct
Remember unit elastic is where the percentage change in price is tantamount to the percentage change in quantity

2. The question didn't really specify if it's talking about the price of elasticity for DEMAND or SUPPLY, but I think it would be E.

Price Elasticity is an economic jargon term for the 'slope' of a demand or supply curve. Firms don't just use price elasticity to see how well consumers respond to price changes, but also how well a change in price affects the quantity supplied.
That would be \(PES=\frac{percent~ change~in~Q_s}{percent~change~in~price}\)

3.
TR = \(Q_{eq}P_{eq}\)
mhchen is right, it is B, price of trucks times quantity sold

Answer 4

<3 <3 <3 <3 <3

Answer 5

I got 1 and 2 wrong but it's okay <3

Answer 6

WHAT

Answer 7

oh wait oof sorry


1. is nonlinear everywhere
It would look like this:


2 then perhaps total revenue was right if it was relating to the total revenue test, otherwise I'm not sure

sorry :(

Answer 8

Then how was 2 wrong

Answer 9

Awww don't be sorry, your fineeeeeeee <3 <3

Answer 10

oh justjm answered it lol

Answer 11

I think 2 was supposed to be total revenue but I put E

Answer 12

\(\color{#0cbb34}{\text{Originally Posted by}}\) @mhchen
Then how was 2 wrong
\(\color{#0cbb34}{\text{End of Quote}}\)
I was heading for E because Price elasticity (of supply) determines the effect of price change on quantity supplied but perhaps you were right with the total revenue lol