Answer Happy

Question 12 (4 marks) There is an increase in the number of adverts highlighting the danger of consuming sugar. Which of the following is likely to occur in the market for sugarless sweets, as a result of this? a. An increase in both the equilibrium price and quantity traded. b. A decrease in equilibrium price and an increase in equilibrium quantity traded. c. A decrease in both the equilibrium price and quantity traded. d. An increase in the equilibrium price and a decrease in the equilibrium quantity traded. Question 13 If the price elasticity of demand is 2.0, and a firm raises its price by 10 percent, the total revenue will... a. Not change. b. Fall by an undeterminable amount given the information available. c. Rise. d. Fall by 20 percent. Question 14 If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30 percent increase. b. 15 percent decrease. c. 0.30 percent increase. d. 0.15 percent decrease. (4 marks) (4 marks) in the quantity demanded.