Question

a. relatively elastic. b. relatively inelastic. c. unit elasticity. d. perfectly elastic. e. perfectly inelastic. 15....

a. relatively elastic.
b. relatively inelastic.
c. unit elasticity.
d. perfectly elastic.
e. perfectly inelastic.
15. Quantity demanded is completely unresponsive to price changes.
16. Price and total revenue vary in opposite directions.
17. The demand for a luxury good whose purchase would exhaust a significant portion of one's income.
18. Total revenue is unaffected as price changes.
19. A firm can sell more or less output at a constant price.
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Answer #1

15. Quantity demanded is completely unresponsive to price changes - perfectly inelastic.

16. Price and TR vary in opposite direction - relatively elastic demand. Because, when demand is elastic, even if price increases by slighter amount, quantity demanded decreases by greater amount. And therefore, total revenue decreases. It means, change in price and change in TR moves in opposite direction.

17. Demand for luxury good - relatively elastic.

18. TR is unaffected as price changes - unit elasticity.

19. A firm can sell more or less output at a constant price - perfectly elastic demand.

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