Exam 4: Elasticity

The supply curve for Fancy Flowers is represented by the equation Q_s = 5 + 10P. a.Graph the supply curve. b.Using prices of $5 and $2,determine whether the price elasticity of supply is elastic or inelastic.

When the price elasticity of demand is elastic,a consumer is:

Henry raised his quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck.Using the midpoint method,his price elasticity of demand is:

Demand is almost always more price elastic in the long run because:

To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5%,a consumer would need to ________ quantity demanded by ________.

Kevin tells the manager at Moo's Ice Cream that he won't buy any ice cream cones costing more than $2,but he will buy a limitless number at any price less than $2.His price elasticity of demand for ice cream cones is:

Jill has a fixed budget and buys all of the items listed below.When will a 20% reduction in price cause her to change the amount she buys the most?

Chris runs a sporting goods store and knows that the price elasticity of demand for his sports clothing line is -1.5.He is planning to lower prices by 10%.The percentage change in quantity demanded will be:

Graph ________ most likely shows the price elasticity of demand for the following situation: Bob's Boots can sell out its entire stock of shoe polish at $2.50 but can sell none if it raises the price to $2.55.

Refer to the following graphs to answer the questions that follow: -Which of these graphs most likely depicts a price elasticity of demand of -5?

When her income increases from $10,000 to $20,000,as shown in the accompanying table,Marguerite increases the quantity demanded from 3 to 7 rolls at a price of $3.From the midpoint method,income elasticity of demand for sushi is:

Refer to the information in the accompanying table.Without any calculations,you know that sushi is a(n):

When the price of pencils increases from $1.50 to $2.50,there is an increase in quantity demanded of pens from 100 to 150.The cross-price elasticity of demand between pencils and pens is:

If the income elasticity of demand is -3,the good will be a(n):

Price elasticity of demand is measured as the:

Refer to the accompanying table to answer the questions that follow. -The price of erasers increases from $0.50 to $1.00 per eraser.Use the midpoint method to calculate the cross-price elasticity of demand between pencils and erasers.

If the cross-price elasticity of demand between Good A and Good B is 2 and the percentage change in price of Good A is 5%,what is the percentage change in quantity demanded of Good B?

What good is most likely to have an income elasticity of demand equal to 0.3?

When Clayton starts working at his first full-time job out of college with a $60,000 salary,he is likely to buy more ________ and less ________.

You are given a list of income elasticity of demand values.Which one represents a necessity?