[This question tests your understanding of the concept of...

[This question tests your understanding of the concept of elasticity. Elasticity, a measure of how much buyers and sellers respond to changes in market conditions, allows us to analyse supply and demand with greater precision. Let's answer some questions on elasticity below:]

1. [What is total revenue? Explain in 100 or less words how price elasticity of demand affects the total revenue of the producers?
2. [Consider the following pairs of goods. For which of the good in each pair would you expect the demand to be more price elastic? List the underlying determinant of price elasticity of demand causing this? (Write the determinant without explanation).                   (1 mark for correctly finding the (more) elastic good + 1 mark for the determinant)
3. walnut or salt
4. Flat-screen monitor or monitors in general 
5. Gasoline in short-run or diamond earring
6. Blue jeans or Tommy Hilfiger jeans
7. Motor oil or cooking oil