Refer to the figure above. How many units of Good X will be supplied if the government sets a price ceiling of Pc on the good?

If 400 apple pies are sold at $4 per pie, but 600 apple pies are sold at $3 per pie, we know: a. that the demand for pies is elastic over that price range

b. that the demand for pies is inelastic over that price range. c. that the demand for pies is unit elastic over that price range. d. nothing about the elasticity of demand.

A decrease in demand will:

a. reduce total revenue b. increase total revenue. c. increase total revenue only if demand is inelastic. d. increase total revenue only if demand is elastic.