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Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.

Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.
Transcribed Image Text:Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.
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