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

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

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.

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

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

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

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