Exam 5: Elasticity

A demand curve with constant slope over all quantity values can have a continuously changing price elasticity of demand.

The more time that elapses, the

If the cross-price elasticity of demand between fish and chicken is 2, then a 2% increase in the price of fish will result in a ________ in the quantity of chicken demanded.

Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. Figure 5.2 -Refer to Figure 5.2. If the price of a hamburger decreases from $10 to $6, the price elasticity of demand equals ________. Use the midpoint formula.

Total revenue decreases if price ________ and demand is ________.

Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. Figure 5.2 -Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment ________ of the demand curve, the demand is inelastic.

Refer to the information provided in Figure 5.7 below to answer the question(s) that follow. Figure 5.7 The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve. -Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount store owners would have received per pumpkin after the imposition and payment of this tax would have been

The price elasticity of demand for bottled water in New York is -3, and the price elasticity of demand for bottled water in Florida is -0.6. In other words, demand in New York is ________ and demand in Florida is ________.

Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. Figure 5.2 -Refer to Figure 5.2. If the price of a hamburger increases from $8 to $10, the price elasticity of demand equals ________. Use the midpoint formula.

Refer to the information provided in Figure 5.4 below to answer the question(s) that follow. Figure 5.4 -Refer to Figure 5.4. Along the given demand curve, which of the following is true?

When the slope of a demand curve is constant, price elasticity of demand can vary.

The ABC Computer Company wants to increase the quantity of computers it sells by 5%. If the price elasticity of demand is -2.5, the company must

A demand curve with constant slope over all quantity values will always have a price elasticity of demand equal to -1.

Every point on a linear demand curve has the same elasticity.

Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. Figure 5.2 -Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment EC of the demand curve, the demand is

Refer to the information provided in Figure 5.3 below to answer the question(s) that follow. Figure 5.3 -Refer to Figure 5.3. Use the midpoint formula. If the price of a gardenburger decreases from $9 to $8, the price elasticity of demand equals ________ and demand is ________.

A demand curve with continuously changing slope over all quantity values will always have a constant price elasticity of demand.

When the price of oysters decreases 25%, quantity demanded increases 10%. The price elasticity of demand for oysters is ________ and total revenue from oyster sales will ________.

Refer to the information provided in Figure 5.7 below to answer the question(s) that follow. Figure 5.7 The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve. -Refer to Figure 5.7. Using the midpoint formula, the price elasticity of demand for pumpkins from the equilibrium point before the imposition of the tax to the equilibrium point after the imposition of the tax is

Refer to the information provided in Figure 5.3 below to answer the question(s) that follow. Figure 5.3 -Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger increases from $7 to $9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.