1. If the cross-price elasticity of demand is positive, then the two goods are substitutes.
True False

2. If the price elasticity of demand is elastic, then by raising price we can increase total revenue.
True False

3. If a company sells a good with an income elasticity of demand = zero, then during a recession, the company's sales will go down significantly.
True False

4. For a linear demand curve, total revenue is maximized where the price elasticity of demand = -2.
True False

5. For calculating the price elasticity of demand, the percent change in price goes in the numerator.
True False

6. An income elasticity of demand that is positive tell us that a good is a normal good.
True False

Your Total Score is: out of 60, which is the highest possible score.