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6. Price elasticity for a normal good represented by a linear demand curve is: a. always negative b. is the same at all price levels c. percentage change in price per unit change in quantity d. percen

Price elasticity for a normal good represented by a linear demand curve is: always negative b. is the same at all price levels c. percentage change…

6. Price elasticity for a normal good represented by a linear demand curve is:a. always negativeb. is the same at all price levelsc. percentage change in price per unit change in quantityd. percentage change in quantity per percentage change in pricee. only two of the above statements are true
7. When elasticity is unitary:a. total revenue is maximumb. profit is maximumc. marginal revenue is zerod. both a) and c) are truee. all three a), b), and c) are true
8. If the quality of a normal good is improved, thena. the demand curve will most likely shift to the rightb. the price elasticity will become less negativec. more quantity will be sold at the same priced. all of the above three statements are truee. only two of the three statements are true
9. Which of the following statement is generally false for a monopoly?a. MR = MCb. it is possible to make excess profits over a long termc. P < ACd. All of the above are true 10. Assuming a linear supply and a linear demand relationship between acres of corn planted and corn prices, the effect of Congress requiring ethanol in gas used by cars would be:a. increase in price for cornb. shift in the demand curve for cornc. increase in supply of cornd. all of the above are truee. only a) and b) are true

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