Demand is said to be inelastic when:

Home Work Help
1

  1. Demand is said to be inelastic when:
    a) An increase in price results in a reduction in total revenue
    b) A reduction in price results in an increase in total revenue
    c) A reduction in price results in a decrease in total revenue
    d) The elasticity coefficient exceeds one

  2. Answer the question based on the following table which shows a demand schedule

Price Quantity Demanded
$5 10
4 13
3 15
2 19
1 25

Refer to the table above, at price $3, the total revenue of the sellers will be
a) $18
b) $12
c) $45
d) $5

  1. The human tendency to believe only those data that agree with one?s preconceptions and ignore other data that contradicts the preconceptions is called
    a) confirmation bias
    b) self-serving bias
    c) overconfidence effect
    d) availability heuristic