Title: QUIZ: Applications of Price Elasticity of Demand (3/3) -- Price Elasticity of Demand Video Explainers
Course: Andria Testing FRE2 > Section: Applications of Price Elasticity of Demand (3/3) -- Price Elasticity of Demand Video Explainers

Q: Who might benefit from understanding price elasticity of demand?
- Scientists and engineers
- Businesspeople and policymakers
- Artists and musicians
- Doctors and nurses
A: Businesspeople and policymakers

Q: If demand for a product is relatively price elastic and the price is increased, what happens to revenue?
- It decreases
- It increases
- It remains constant
-  It fluctuates randomly
A: It decreases

Q: How do consumers typically respond to price increases for elastic goods?
- They remain unaffected
- They increase consumption
- They decrease consumption significantly 
- They switch to substitutes
A: They decrease consumption significantly 

Q: What happens to tax revenues when the tax is increased on a price inelastic good?
- Tax revenues increase 
- Tax revenues decrease 
- Tax revenues remain constant 
- Tax revenues become unpredictable
A: Tax revenues increase 

Q: What is the primary goal of raising taxes on price elastic goods?
- To increase tax revenues
- To keep tax revenue constant
- To encourage consumption of those goods
- To discourage consumption of those goods
A: To discourage consumption of those goods