Exam 5: Elasticity and Its Application

Figure 5-5 -Refer to Figure 5-5.Using the midpoint method,between prices of $48 and $54,price elasticity of demand is about

You are in charge of the local city-owned aquatic center.You need to increase the revenue generated by the aquatic center in order to meet expenses.The mayor advises you to decrease the price of a day pass.The city manager recommends increasing the price of a day pass.You realize that

There are very few,if any,good substitutes for automotive tires.Therefore,the demand for automotive tires would tend to be

Table 5-2 -Refer to Table 5-2.Using the midpoint method,if the price falls from $80 to $60,the price elasticity of demand is

If a 25% change in price results in a 40% change in quantity supplied,then the price elasticity of supply is about

For a horizontal demand curve,

Figure 5-4 -Refer to Figure 5-4.Assume the section of the demand curve from A to B corresponds to prices between $8 and $16.Then,when the price changes between $9 and $10,

Table 5-6 -Refer to Table 5-6.Using the midpoint method,what is the income elasticity of demand for good X?

If the price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent as a result,then the price elasticity of demand is 3.

At a price of $1.00,a local coffee shop is willing to supply 100 cinnamon rolls per day.At a price of $1.20,the coffee shop would be willing to supply 150 cinnamon rolls per day.Using the midpoint method,the price elasticity of supply is about

If the price elasticity of demand for tuna is 0.7,then a 1.5% increase in the price of tuna will decrease the quantity demanded of tuna by

Generally,a firm is more willing and able to increase quantity supplied in response to a price change when

Which of the following is likely to have the most price elastic demand?

A "Just Say No" drug education policy that successfully educates consumers to reduce their demand for drugs will lower drug prices and reduce the quantity of drugs demanded.

Table 5-5 -Refer to Table 5-5.Along which of the supply curves does quantity supplied move proportionately more than the price?

A linear,downward-sloping demand curve has a constant elasticity but a changing slope.

When consumers face rising gasoline prices,they typically

A key determinant of the price elasticity of supply is the

The difference between slope and elasticity is that slope

The demand for Godiva pumpkin truffles is likely quite elastic because