Exam 4: Elasticity

Use the figure below to answer the following questions. Figure 4.1.2 -A given percentage rise in the price of a good is likely to result in a larger percentage decrease in the quantity of the good demanded

Suppose that the price elasticity of demand for bottled water in Sackville,New Brunswick is 1.5,while the price elasticity of demand for bottled water in Prince Albert,Saskatchewan is 0.93.This implies that the demand in Sackville is ________ and demand in Prince Albert is ________.

Use the table below to answer the following questions. Table 4.2.2 -Refer to Table 4.2.2.The cross elasticity of demand for Jolt with respect to the price of Coke is

For which one of the following is demand likely to be most inelastic?

A fall in the price of a good from $11.50 to $8.50 results in an increase in the quantity demanded from 19,200 to 20,800 units.The price elasticity of demand is

The price of oranges rises by 3 percent and quantity of oranges demanded decreases by 3 percent.We conclude that the demand for oranges is

If the Canucks lower ticket prices and find that total revenue does not change,then the price elasticity of demand for tickets is

If the supply curve passes through the origin,then the price elasticity of supply is ________.

The elasticity of supply is a units-free measure of the responsiveness of the

Use the table below to answer the following question. Table 4.1.4 -Refer to Table 4.1.4.The table shows the demand schedule for computer chips.As the price rises from $200 a chip to $300 a chip,total revenue ________.So at a price of $250 a chip,demand is ________.

If a 10 percent increase in income results in a 5 percent increase in quantity demanded,what is the income elasticity of demand?

Use the figure below to answer the following question. Figure 4.1.3 -Given the relationship shown in Figure 4.1.3 between total revenue from the sale of a good and the quantity of the good sold,then

Which one of the following must be true if demand is income inelastic?

If a rise in price results in a decrease in total revenue,then the price elasticity of demand is

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

Which one of the following illustrates an inelastic demand?

Use the figure below to answer the following questions. Figure 4.1.2 -The quantity of apples demanded decreases by 8 percent when the price rises by 8 percent.The demand for apples is

If good A is a complement of good B,then the cross elasticity of demand is

If Mr.Brown's income increases by 12 percent and as a result his quantity demanded of music downloads increases by 4 percent,Mr.Brown's income elasticity of demand for music downloads is

Use the table below to answer the following questions. Table 4.2.1 -Consider the information in Table 4.2.1.Select the best statement.