Holding all else constant. If a consumer decreases consumption of pencils by 20

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Holding all else constant. If a consumer decreases consumption of pencils by 20 percent when the market price of pencils Increases from $0.50 to $0.60, then the price elasticity of demand, using the percentage method, must be elastic. very Inelastic. slightly Inelastic unit elastic Suppose there is a baseball park with 10,000 scats and a demand for scats in the park as follows: Referring to Table 1. if the management of the baseball park charges S8 per ticket there w ill be a shortage of tickets. there w ill be 2,000 empty seats. there will be 4,000 empty seats. revenue will be maximized. none of the above Refer to Table 1. Notice that lowering the price from $8 to $6 per ticket decreases revenue by $4,000. In the $6 to S8 price range, demand for baseball tickets must be price elastic price inelastic price unit elastic Income elastic none of the above Suppose a producer Is able to separate customers into two groups, one having a price inelastic demand and the other having a price elastic demand. If the producer's objective is to increase total revenue, she should Increase the price charged to customers with the price elastic demand and decrease the price charged to customers with the pricc inelastic demand. decrease the price charged to customers with the price elastic demand and increase the price charged to customers with the price inelastic demand. charge the same price to both groups of customers. increase the price for both groups of customers. none of the above

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