Here is a demand function: Q =1 5 1llP _ [In the answer sheet circle your choice for its marginal revenue (MR) function. a. MR=2.4Q b. MR=3.5Q E. MR=1.167Q c. MR=1.5.2Q (1. MR =1.333Q f. RIR=1.S.333Q Circle your choice for the quantity that will maximize total revenue for the :Jnction in above. 1 3 4.5 5 6 7.5 Suppose the price elasticity of demand for bread is Illll If the price of bread rises by 113%, the quantity demanded will decrease by: a. 2 percent and total expenditures on bread will rise. b. 2 percent and total expenditures on bread will fall. c. 213' percent and total expenditures on bread will rise. d. 2'3 percent and total expenditures on bread will fall. e. 23 percent and total expenditures on bread will be unchanged. Suppose that a l'l'u increase in income causes a 20% decrease in demand for good X. The coefcient of income elasticity of demand is: a. negative and therefore these goods are inferior goods. b. negative and therefore these goods are complements. c. positive and therefore these goods are substitutes. d. positive and therefore these goods are normal goods. If price decreases om $4513 to $350 and quantity demanded increases from 1,200 to 1,5013, the price elasticity of demand in this price range is: {1.39 {1.5 .39 13] 1.25 2.33 If the elasticity of supply for crude oil is 2.5, how much will production have to decrease to match a 1D% price decrease? 2.5% 8% 143% 15% 25% 413% Demand for X decreases 'om l to 5!] when the price of Y increases from $5 to $5- The crossprice elasticity of demand is: 3.67" l.22 1.22 1.44 3.67" 4.33