MICROECONOMICS Can someone please help?

[EDIESE]

For each of the following, state whether you agree or disagree and why. The explanation is the most important part of your answer.
a. Every demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.
b. If the elasticity of demand for long-distance telephone calls is – 1.5 and the price of long distance calls falls by 20 percent as a result of increased competition from the telecommunications bill that passed two years ago, households on average will spend less in total on long-distance service.
c. In 2003, an econometrics class at Boston University estimated that the demand for lobsters in the United States was approximately a straight line intersecting the price axis at $87 per pound and intersecting the X-axis at 110 million pounds per year. This demand curve is very elastic.

[spiritmech]

These are guesses (I took Macro instead, sorry!):

a. False.
b. False. They will spend more.
c. False.

I wonder if I got the right answers.
sm

[Cyrus Johnson]

For each of the following, state whether you agree or disagree and why. The explanation is the most important part of your answer.
a. Every demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.

Of course. If this wasn't true, I'd like to meet the bozo who would pay ten million for my empty Coke bottle.

b. If the elasticity of demand for long-distance telephone calls is – 1.5 and the price of long distance calls falls by 20 percent as a result of increased competition from the telecommunications bill that passed two years ago, households on average will spend less in total on long-distance service.

Absolutely. The price has fallen, but not by so much that increased usage will offset that loss. The price has to drop by at least 50%.

c. In 2003, an econometrics class at Boston University estimated that the demand for lobsters in the United States was approximately a straight line intersecting the price axis at $87 per pound and intersecting the X-axis at 110 million pounds per year. This demand curve is very elastic.

No, I totally disagree. Mainly I disagree here since I already agreed with the first two, and I figure they aren't all going to be the same.

How did I do?

[Origian]

Of course. If this wasn't true, I'd like to meet the bozo who would pay ten million for my empty Coke bottle.
Are you sure you aren't getting the Price and Quantity axes mixed up? I would argue that, as price decreases, the quantity demanded will inevitably increase - to the point where, at zero Price, the quantity of units demanded would be in effect infinite (due to infinite wants). Therefore, the curve would not (ideally) intersect the Quantity axis.

It would however intersect the Price axis at some point, for the reason you stated - there would be a price above which nobody would be prepared to pay for your coke bottle.

[TIME]

Did you every get the answers to this