Exam 4: Elasticity

A 15 percent increase in the price of cookies results in a 9 percent decrease in the quantity of cookies sold.The revenue received by cookie suppliers will ________ because the price elasticity of demand for cookies is ________.

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

Salima is a devoted Coca-Cola consumer,whereas Antonia can drink either Coca-Cola or Pepsi products.Salima's demand for Coca-Cola will be relatively more ________,while Antonia's demand will be relatively more ________.

Cross-price elasticity measures the relationship between

A perfectly elastic supply curve

If the income elasticity of demand for good smartphone apps is 5 and the percentage change in income is 10 percent,what is the percentage change in the quantity consumed?

If the income elasticity of demand is 1.2,the good will be a(n)________ good.

Assume that the market for pencils is in equilibrium and that demand is very price elastic.The popularity of digital tablets and electronic pens increases and demand for pencils declines.The equilibrium change in quantity demanded is

Over time,the price elasticity of supply for sunglasses will become more

Explain whether you agree or disagree with the following statement: "The slope of the demand curve also tells us about the elasticity of demand."

The demand for Mariana's earrings can be represented by the equation: Qd =-2P+10 a.Graph the demand equation; include the x and y intercepts. b.If the price = $4.50,what is quantity demanded? If the price decreases to $4.00,what is the quantity demanded? What is the price elasticity of demand between these two points along the demand curve? c.Repeat the calculations in parts (a)and (b)for price = $1.00 and $0.50.Determine the quantity demanded at each price and the price elasticity of demand at this point on the graph.

When her income increases from $10,000 to $20,000,as shown in the accompanying table,Juanita 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

As price elasticity of supply becomes more elastic over time,the overall shape of the supply curve

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 percent,what is the percentage change in quantity demanded of Good B?

If a business finds that demand for its good is very price elastic,it knows that

The cross-price elasticity is measured by

"No matter the price,I will always buy five gallons of ice cream a week.I love ice cream!" This statement reflects a price elasticity of demand that is

Income elasticity of demand is defined as

If the price elasticity of supply is 1.5,we know that supply is

When would oil producers see the largest percentage decline in the quantity demanded for oil due to an increase in the price of oil today?