1. If P goes down and TR goes down, you know the demand is:

A) elastic.
B) inelastic.
C) unit elastic.
D) cross elastic.
E) income elastic.

2. If marginal revenue is positive, then

A) an increase in P causes TR to go down.
B) a decrease in P causes TR to go up.
C) the demand is elastic.
D) Ed > 1.
E) all of the above are correct answers.

3. TR is the greatest where

A) MR crosses the x axis up to the demand curve.
B) demand is elastic.
C) demand is inelastic.
D) MR is negative.
E) MR is positive.