Exam 4: Elasticity

Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. In 2007, each kiosk averaged about 50 rentals per day. Suppose Redbox increases their daily price to $1.50. What is the price elasticity of demand if rentals decrease by 20 per day?

If the cross elasticity of demand between goods A and B is positive,

Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by

Demand is elastic when a price ________ results in total revenue ________.

If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ________ and X and Z are ________.

If a rise in the price of good 1 decreases the quantity of good 2 demanded,

A rise in the price of good A shifts the ________ good B rightward if the cross elasticity of demand between A and B is ________.

Suppose the quantity demanded is 5 units when the price is $1.00. If the price rises to $2.00, the quantity demanded falls to 3 units. The price elasticity of demand is

Perfectly elastic demand is represented by a demand curve that

-The table above gives the demand schedule for a good. What is the total revenue at point A? At point B? At point C? At point D? At point E?

The greater the substitutability between Northwest timber and Southeast timber, the ________ is the cross elasticity of demand between timber from the two regions and the ________ is the elasticity of demand for Northwest timber.

If the elasticity of supply of a good is zero, then its

A straight-line demand curve with negative slope intersects the horizontal axis at 200 tons per week. The point on the demand curve at which the price elasticity of demand is 1 corresponds to a quantity demanded

If a shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the

The demand for a good is elastic if

Does the fact that the price elasticity for food is inelastic violate the law of demand?

-The table above gives the demand schedule for snow peas. The demand curve for snow peas is a straight line and so the elasticity of demand is

When the price of milk rose 50 percent, the quantity of milk sold fell 25 percent and the sale of breakfast cereals also fell 25 percent. This set of facts indicates that the

If the quantity demanded of a good decreases by 10 percent when the price of the good increases by 5 percent, the elasticity of demand is -2.00.

The cross elasticity of demand for substitutes is always positive.