Exam 6: Elasticity

You are the only seller of eggs in town, and the price-elasticity coefficient for eggs is known to be 0.8.If you want to increase your sales quantity by 10 percent through a price change, what should you do to price?

If the percentage change in quantity demanded is less than the percentage change in price, then demand is said to be elastic.

If the government imposes an excise tax on a good, it will collect the most tax revenues from it if the demand for the good is

To economists, the main differences between "the short run" and "the long run" are that

When the price of a product is increases by 15 percent, the quantity demanded decreases by 10 percent.We can therefore conclude that the demand for this product is

When the price of movie tickets in a certain town was reduced, the movietheaters' revenues did not change.This suggests that the demand for movie tickets in that town has a price- elasticity coefficient of

We would expect

Supply curves tend to be

The elasticity of supply of product X is unitary if the price of X rises by

The greater the ease of shifting resources from product X to product Y in the production process, the greater is the elasticity of supply of product Y.

The price elasticity of supply measures how

The demand for a luxury good whose purchase would exhaust a big portion of one's income is

Suppose the price elasticity of demand for bread is 0.20.If the price of bread falls by 10 percent, the quantity demanded will increase by

In which price range of the accompanying demand schedule is demand elastic? Price Quantity Demanded 4 2 3 4 2 6 1 8

Suppose we find that the price elasticity of demand for a product is 3.5 when its price is increased by 2 percent.We can conclude that quantity demanded

(Consider This) Elasticity can be thought of as degree of relative

Refer to the table.Over the $10-$8 price range, the elasticity coefficient of supply is

If price and total revenue vary in opposite directions, demand is

The income elasticity of demand for jewelry is +2.Other things equal, a 10 percent increase in consumer income will

We would expect the cross-elasticity of demand between popcorn and potato chips to be negative.