Question : When demand is inelastic, a decrease in price will result in:

Option 1: A decrease in total revenue.

Option 2: An increase in total revenue.

Option 3: No change in total revenue.

Option 4: An unpredictable change in total revenue.

Question : When demand is unitary elastic, a price increase results 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 : 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 : When demand is perfectly elastic, a decrease in price will result in:

Option 1: No change in quantity demanded.

Option 2:  A small change in quantity demanded.

Option 3: A large change in quantity demanded.

Option 4: An unpredictable change in quantity demanded.

Question : Statement 1: If the price of a good increases, and its total revenue decreases, demand for that good is elastic.

Statement 2: Elastic demand implies that an increase in price leads to a proportionately larger decrease in quantity demanded, resulting in lower total revenue.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.