QUESTION 11 When demand is elastic, an increase in price causes the seller\'s to

Question

QUESTION 11 When demand is elastic, an increase in price causes the seller's total revenue to: O increase. O decrease. O remain the same. O fall to zero. QUESTION 12 Consider a demand function for movie tickets Q=1000/R Which of the following statement is correct? O The demand function is elastic in the upper portions of the curve and inelastic in the lower portions. Since quantity demanded increases as price decreases, total expenditures increase. This is an isoelastic demand curve. 0 The demand is elastic throughout the curve.

Explanation / Answer

1-decreases

2-this is an isoelastic demand curve(as it is a rectangular hyperbola).

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