The change in total welfare from a 10 increase in price will ...

[littleanan]

The change in total welfare from a 10 increase in price will depend only on the elasticity of demand.
 
  Indicate whether the statement is true or false

Question 2

Consumers who are more sensitive to changes in price suffer a greater loss of consumer surplus from any given price increase.
 
  Indicate whether the statement is true or false

[kilada]

Answer to Question 1

False. The effect of a price change also depends on revenue changes.

Answer to Question 2

False. Consumers who are more sensitive to the price increase will reduce their purchase of the good by a greater extent than those who are not price sensitive. As a result, they incur a smaller loss of consumer surplus.

[littleanan]

YES! Correct, THANKS for helping me on my review

[kswal303]

Thanks for the timely response, appreciate it