4. if Demands is inelastic which of the following ust happened when price increases?
A) deadweight loss decreases
B) Quality Increases
C) Total revenue increases
D) Profit decreases
5) The demand for milk as a category is not very sensetive to price. Which of the following could be amount the reasons why the demand is so inelastic?
A) The amount of milk dairies produce can’t change quickly in response to price movement.
B) Milk is a narrow product category within the larger category of dairy products
C) None of the susbtitutes for milk are very close substitutes
D) Milk purchases are a large portion of any consumers’ total spending
6) The income eleasticity of port in china is estimated to be +0.67 If income in China rise, what does the model of supply and demand predict for the port market?
A) a decrease in port consumption and decrease in price
B) a increase in port consumption and decrease in price
C) a increase in port consumption and Increase in price
C) a decrease in port consumption and Increase in price