Exam 6: Elasticity

You are the newly appointed sales manager of the Rock Computer Tablets Company and have been charged with the task of increasing revenues.Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one.You should

If the price elasticity of demand for a product is unity, a decrease in price will

The supply of product X is elastic if the price of X rises by

Which of the following is correct?

A product that is successfully advertised and has loyal buyers would have a low price-elasticity coefficient.

The demand for a necessity whose cost is a small portion of one's total income is

A demand curve that is parallel to the horizontal axis is

The price elasticity of demand for a popular sporting event is 1.2.If the price of a ticket to this event increases by 10 percent, the quantity of tickets demanded will

The total revenue received by sellers of a good is computed by

The price-elasticity of demand coefficient, Ed, is measured in terms of

The cross elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be

We would expect the cross elasticity of demand between dress shirts and ties to be

The total-revenue test for elasticity

We would expect the cross elasticity of demand between Pepsi and Coke to be

A perfectly inelastic demand schedule

A good with a price-elasticity coefficient of 0.75 has a demand that is price-inelastic.

Which type of goods is most adversely affected by recessions?

If the price-elasticity coefficient for a product is 0.68 and the seller wants to raise revenues by changing its price, then the seller should cut the price of the product.

The coefficient of price-elasticity of supply for a product is 2 if

In the price range where demand is elastic, if the seller of the good raises its price, then total revenues will increase.