1. If the price elasticity of demand is equivalent to 1.5, then a 1 percent raise in price will result in the 1.5 percent reduce in quantity demanded?
True
False
2. If the price elasticity of the demand is inelastic, a raise in the price raises both total revenue and quantity demanded.
True
False
3. The price elasticity of demand for Pepsi is more elastic than price elasticity of the demand for sodas in general.
True
False
4. A demand curve is flat (that is, horizontal) if consumers diminish their quantity demanded to zero when price rises by even slightest amount.
True
False
5. Elasticity of demand is unitary at point on a linear demand curve for which total revenue is maximized.
True
False