Exam 19: Demand and Supply Elasticity

When two goods are substitutes for each other, the cross price elasticity of demand

Consider the following data: Price of A Quantity Demanded of A $5 6 $4 10 The absolute value of the price elasticity of demand for product A is

If the market price of a product falls and as a result total revenue of firms falls, we can conclude that

The price elasticity of demand measures

When the absolute percentage change in quantity demanded is just equal to the percentage change in price, demand is

If the price of good X increases by 1 percent, then the quantity supplied increases by more than 1 percent. This means

For which of the following would the absolute price elasticity of demand be greatest?

Other things being equal, demand is less elastic

Generally, expenses on toothpaste are a small part of a consumer's budget, so the demand for toothpaste is more likely to be

A vertical supply curve may be described as being

Price elasticity of demand is measured using percentage changes. Why?

A positive cross price elasticity of demand between two goods suggests that the goods are

Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is

If the price of gasoline increased by 5 % and consumers responded by purchasing 1 % less gasoline, the absolute value of price elasticity of demand for gasoline would equal

The cross price elasticity of demand is defined as

Which of the following is NOT a determinant of the price elasticity of demand?

The responsiveness of quantity demanded of a good to changes in its price is the

When the consumer spends over 50% of her income on a good, demand will be

-Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?

The longer the time period that suppliers have to adjust to price changes, the