If the price of lunch at the cshool cafeteria increases and revenues of the cafeteria remain constant, we can conclude that the elasticity of demand for a school lunch is

1.   ?    Elastic
2.   ?    Perfectly elastic
3.   ?    Unit elastic
4.   ?    Inelastic
5.   ?    Perfectly inelastic

A marketing survey shows that gate receipts (total ticket revenue) would increase if the price of tickets to Los Angeles Lakers games increased even though the number of ticket sold would fall. What does this imply about the price elasticity of demand for Lakers tickets?

1.   ?    Demand is elastic
2.   ?    Demand is inelastic
3.   ?    Demand is unit elastic
4.   ?    Demand is perfectly inelastic
5.   ?    Demand is perfectly elastic

For which of the following elasticities will an increase in price cause a decrase in total revenue?

I. 1.6
II. 0.8
III. 0.6

1.   ?    I only
2.   ?    II only
3.   ?    III only
4.   ?    I and II only
5.   ?    II and III only

When Cabot's Car Parts put their inventory on sale they noticed that their total revenue went up. From this information we can accurately conclude that Cabot is facing

1.   ?    inelastic demand
2.   ?    elastic demand
3.   ?    unit elastic demand
4.   ?    selling a normal good
5.   ?    selling an inferior good

Using the information in the graph above, we would expect to find a price elasticy of demand coefficient

1.   ?    larger than 1 in section 1
2.   ?    smaller than 1 in section 1
3.   ?    equal to 1 in section 1
4.   ?    larger than 1 in section 2
5.   ?    equal to 1 in section 2

Assuming the demand for illegal drugs is very inelastic and the supply is fairly elastic, and if it is true that on the of the largest costs to society of illegal drugs is crime, then which of the following would be favored by economists to lower the crime rate?

1.   ?    A drug interdiction program that aims enforcement at sellers
2.   ?    Programs focused on reducing the demand for drugs
3.   ?    Programs aimed at eliminating the source of illegal drugs
4.   ?    Lowering the penalty for those caught using illegal drugs
5.   ?    Raising the penalty for those caught selling illegal drugs

Using the information in the graph above, at equilibrium the consumer surplus that would result is described by the area bounded by

1.   ?    A,G,F
2.   ?    A,B,G
3.   ?    F,G,E
4.   ?    A,G,E
5.   ?    A,G,C

Using the information in the graph above, at equilibrium the producer surplus that would result is described by the area bounded by

1.   ?    A,G,F
2.   ?    A,B,G
3.   ?    F,G,E
4.   ?    A,G,E
5.   ?    A,G,C

Which of the following correctly describes the signs of cross-price elasticity of demand for substitute goods, complementary goods, and independent goods respectively?

1.   ?    +,+,+
2.   ?    +,-,0
3.   ?    -,+,0
4.   ?    -,-,-
5.   ?    0,0,0