Exam 4: Elasticity

Suppose that the quantity demanded of skipping ropes rises from 1250 to 1750 units when the price falls from $1.25 to $0.75 per unit.The price elasticity of demand for this product is

If two goods,X and Y,have a negative cross elasticity of demand,then we know that they

If the income elasticity of demand for some good is 2.4,a 10% increase in income results in

Suppose you are advising the government on changes in the gasoline market.The current price is $1.00 per litre and the quantity demanded is 2.5 million litres per day.Long-run price elasticity of demand is constant at 0.8.If the supply of gasoline is reduced so that the price rises to $1.50 per litre,then quantity demanded is predicted to fall in the long run by

What does the following statement imply about price elasticity of demand? ʺAirlines experiencing higher traffic with reduced fares,but are struggling with fall in revenue.ʺ

Suppose an analysis of the possible effects of increases in university tuition fees predicts that a 10% increase in tuition fees will result in a 3% decline in enrolment.What is the implied price elasticity of demand for university attendance?

If the total expenditure on photocopiers increases when the price of photocopiers rises,the price elasticity of demand is

During the 1970s,OPECʹs output restrictions caused gasoline prices to increase sharply.Coincidentally,demand for gas-guzzling cars fell.A likely explanation for these observations is that gasoline and cars had a ________ elasticity of demand that was ________.

Suppose the cross-price elasticity of demand between raspberry jam and strawberry jam is 7.5.The interpretation of this result is that

If a productʹs income elasticity of demand is -1.7,then we can conclude that

Suppose the price elasticity of demand for some good is 1.4.A 10% increase in the price of the good results in

If Vickyʹs income increases by 8% and she increases her consumption of music downloads by 4%,then her income elasticity of demand for music downloads is

The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1 -Refer to Table 4-1.Between the prices of $4 and $6 the price elasticity of demand is

Suppose the market supply curve for some good is upward sloping.If the imposition of an excise tax causes no change in the equilibrium quantity sold in the market,the goodʹs demand curve must be ________, meaning that the burden of the tax has fallen completely on the ________

If demand is unit elastic at all prices,then the demand curve is

The table below shows the demand schedule for museum admissions in a small city. TABLE 4-1 -Refer to Table 4-1.Between the prices of $8 and $6 the price elasticity of demand is

Suppose an increase in world demand for potash (used in the production of fertilizer)increases the price by 22 percent.Annual Canadian production increases by 33 percent.What is the elasticity of supply of Canadian potash?

Consider two demand curves and the same price change for both.If the resulting percentage change in quantity demanded is greater for one ( D1)than the other (D2),we can conclude

A value of infinity for the elasticity of supply of some product implies that

If the value of the price elasticity of demand is 0.6,demand is said to be