Question: 1. Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price

1. Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. Based on this information, the demand for Jim's product is

a) Elastic
b) Unitary elastic
c) Inelastic
d) Hard to determine

2. Which of the following is false?

a) Products with close substitutes have elastic demand

b) Demand for individual brand is less elastic than industry aggregate demand
c) Products with many complements have less elastic demand
d) In the long run, demand curves become more elastic

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