Which item would probably have inelastic demand for a student?
(A) Sneakers
(B) Ball point pen
(C) School bus pass
(D) Mouse pad
Ans: (C) School bus pass
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The percentage change in quantity demanded of good A divided by the percentage change in price of good B is the formula for
a. cross-price elasticity of demand. b. income elasticity of demand. c. zero elasticity of demand. d. infinite elasticity of demand.
Diminishing marginal utility explains why:
A) the income effect exceeds the substitution effect. B) the substitution effect exceeds the income effect. C) supply curves are upsloping. D) demand curves are downsloping.
If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
A) rise. B) fall. C) stay the same. D) either rise or fall, but it is impossible to determine which.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. If twelve microwave ovens are produced, Micro Oven's total fixed costs are
A. $25. B. $41.67. C. $50. D. $300.