Exam 5: Price Elasticity of Demand and Supply

Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand?

In response to a price change for good Y, if the cross-elasticity of demand for good Y is positive, good X and good Y are complements. ​ ​ ​ ​

Exhibit 5-8 Supply and demand curves for good X ​ -As shown in Exhibit 5-8, the price elasticity of demand for good X between points E and Z is:

In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the ____ and get a ____.

Exhibit 5-1 Demand curve ​ -In Exhibit 5-1, the demand curve between points b and c is:

Exhibit 5-1 Demand curve ​ -In Exhibit 5-1, between points a and b, the price elasticity of demand measures:

Exhibit 5-7 Demand curve for concert tickets ​ -In Exhibit 5-7, if promoters charge a price of $10 per ticket, then their total revenue is:

A horizontal demand curve indicates perfectly elastic demand. ​ ​

If the government wants to raise tax revenue and shift most of the tax burden to the sellers, it would impose a tax on a good with a:

If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:

Which of the following pairs is most likely to represent complementary goods?

As the economy recovers from a recession, we should expect that demand for:

A product would be more demand price elastic:

The number of computers bought increased by 20 percent when the price of on-line services declined by 10 percent. Assuming other factors are held constant, computers and on-line services are classified as:

If the managers of the bus system found that revenues increase when fares are raised, they would conclude that price elasticity demand for subway service is inelastic.

Exhibit 5-9 Supply and demand curves for good X ​ -As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and D is:

Price elasticity of demand is defined as the ratio of the:

Exhibit 5-9 Supply and demand curves for good X ​ -As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:

Exhibit 5-2 Price and quantity demanded data Price Quantity Demanded 5 20 4 25 3 30 2 35 1 40 -Using Exhibit 5-2, what is the price elasticity of demand when the price falls from five dollars to four?

If demand for a good is price elastic, then the price elasticity will be: