When considering two goods, a corner solution exists if:

a consumer spends his or her entire budget and chooses to purchase equal amounts of the two goods.

a consumer spends his or her entire budget and chooses to purchase zero units of one good.

a consumer chooses to purchase zero units of both goods.

the marginal utilities per dollar spent on the two goods are equal.

The cross-price elasticity of demand between goods X and Y:

measures the responsiveness of the quantity of X demanded to changes in the price of Y.

is the percentage change in the price of Y divided by the percentage change in the quantity of X demanded.

is greater than zero if X and Y are substitutes.

both "measures the responsiveness of the quantity of X demanded to changes in the price of Y" and "is greater than zero if X and Y are substitutes".

All of the choices are correct.

Marginal revenue:

is the change in total revenue when output increases by one unit.

is always greater than zero.

measures the slope of the total revenue curve.

both "is the change in total revenue when output increases by one unit" and "measures the slope of the total revenue curve".

All of the choices are correct.

When demand is inelastic:

quantity sold does not increase when price decreases.

selling one more unit of output causes marginal revenue to increase.

selling one more unit of output cause total revenue to increase.

buyers are not very responsive to changes in the price of the product.

the percentage change in quantity demanded will exceed the percentage change in price (in absolute value).

Total revenue increased for a firm operating in the elastic range of its demand curve. Which of the following statements is correct?

The firm must have raised price.

The firm must have lowered price.

Quantity demanded must have increased.

both "The firm must have raised price" and "Quantity demanded must have increased".

both "The firm must have lowered price" and "Quantity demanded must have increased".

When marginal revenue is positive:

marginal revenue is greater than price.

demand is elastic.

increasing price will increase total revenue.

All of these options are correct.

Demand equations derived from actual market data are:

empirical demand functions.

never estimated using consumer interviews.

generally estimated using regression analysis.

both "empirical demand functions" and "generally estimated using regression analysis".

A representative sample:

eliminates the problem of response bias.

reflects the characteristics of the population.

is frequently a random sample.

both "reflects the characteristics of the population" and "is frequently a random sample".