Question : The demand curve will shift forward when ______.

Option 1: price of complementary goods fall

Option 2: price of substitute goods decreases

Option 3: income of consumer fall

Option 4: price of complement goods increases

Question : When the price elasticity of demand is greater than 1, a decrease in price will result in:

Option 1: An increase in total revenue

Option 2: A decrease in total revenue

Option 3: No change in total revenue

Option 4: An indeterminate change in total revenue

Question : If the price elasticity of demand for a good is 1.2, then a 10% decrease in price will result in a:

Option 1: 1.2% increase in quantity demanded.

Option 2: 12% increase in quantity demanded.

Option 3: 1.2% decrease in quantity demanded.

Option 4: 12% decrease in quantity demanded.

Question :  If the price elasticity of demand for a good is -0.5, then a 10% increase in price will result in a:

Option 1: 0.5% decrease in quantity demanded.

Option 2: 5% decrease in quantity demanded.

Option 3: 0.5% increase in quantity demanded.

Option 4: 5% increase in quantity demanded.

Question : If the price elasticity of demand for a good is -1.5, then a 10% increase in price will result in a:

Option 1: 10% decrease in quantity demanded.

Option 2: 15% decrease in quantity demanded.

Option 3: 10% increase in quantity demanded.

Option 4: 15% increase in quantity demanded.