Exam 4: Elasticity

During the 1970s, OPEC's 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 .

When a product's price has an inverse relationship with total expenditure, then demand has a price elasticity of

If the demand for some good fluctuates, but supply is constant, then which of the followingcombinations would generally yield the greatest price fluctuations?

If household income increases by 50 percent and desired household expenditure on vacation travel increases by 15 percent, the price elasticity of demand for vacation travel is

A demand curve for which any price-quantity combination yields the same total expenditure reveals a price elasticity of demand equal to

The imposition of an excise tax will cause the least burden on consumers when demand is

Consumers will bear a larger burden of an excise tax if

Producers will bear a larger burden of a sales tax if

If firms' costs rise rapidly as output increases, the

If the total expenditure on perfume increases when the price of perfume falls, the price elasticity of demand is

Suppose you are shown two intersecting demand curves that are drawn on the same scale. At the point of intersection, one of the demand curves is steeper than the other. Which of the following could explain the difference in slopes?

Suppose Statistics canada reports that total income earned by Canadian barley farmers has declined as a result of a partial crop failure that has driven up the Canadian price of barley. We can conclude that the price elasticity of demand for barley in Canada is

When national income falls, sales of vacation packages also fall, even at constant prices. This fact suggests that the _ _ elasticity of demand for vacation packages is .

If pizza and beer are complementary goods, we can conclude that