Question 18.18. You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should: increase the price of the software. decrease the price of the software. hold the price of the software constant. increase the supply of the software. Question 19.19. A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is unity. elastic. inelastic. perfectly elastic. Question 20.20. Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an inelastic supply of movies in the evening. elastic demand to see movies in the evening. elastic demand to see movies in the afternoon. inelastic demand to see movies in the afternoon.
Question 18.18. You are the sales manager for a software company and have been informed that the
increase the price of the software.
decrease the price of the software.
hold the price of the software constant.
increase the supply of the software.
Question 19.19. A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
unity.
elastic.
inelastic.
perfectly elastic.
Question 20.20. Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an
inelastic supply of movies in the evening.
elastic demand to see movies in the evening.
elastic demand to see movies in the afternoon.
inelastic demand to see movies in the afternoon.
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