Sandra consumes two goodstea and coffee. Her demand for tea is inelastic while her demand for coffee is elastic. If there is an increase in the price of both tea and coffee, ________.
A) Sandra's expenditure on both tea and coffee is likely to increase
B) Sandra's revenue on both tea and coffee is likely to decrease
C) Sandra's expenditure on tea will increase and her expenditure on coffee will decrease
D) Sandra's expenditure on coffee will increase and her expenditure on tea will decrease
Question 2
Relative to free trade, when a tariff is imposed in a market for an imported good,
A) the consumer surplus in that market increases.
B) the producer surplus in that market decreases.
C) the total surplus in that market decreases.
D) tariff revenue decreases.
E) deadweight loss decreases.
Coffee and music
Classic Supply - Demand Curve
Marginal Supply - Demand Curve
Elastic/inelastic #5
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Wood coffee table