Exam 6: Elasticity

Figure: Estimating Price Elasticity (Figure: Estimating Price Elasticity) Look at the figure Estimating Price Elasticity.Between the two prices, P₁ and P₂, which demand curve has the lowest price elasticity? A.D1 B.D2 C.D3 D.D4

The price elasticity of demand for gasoline is likely to be higher in the long run than in the short run.

Figure: The Demand Curve (Figure: The Demand Curve) If the price is $8, total revenue is _ .If the price is $7, total revenue is _. A.$24; $16 B.$14; $21 C.$16; $21 D.$10; $10

Suppose you are told that the short-run price elasticity of supply for a movie theatre is zero.Does this make sense?

If the price of chocolate-covered peanuts decreases from $1.15 to $0.90 and the quantity demanded increases from 0 bags to 400 bags, then the price elasticity of demand (using the midpoint method) is:

The price elasticity of demand along a demand curve with a constant slope:

Which factor is important in determining the price elasticity of supply? A.the time the producer has to adjust inputs and outputs B.the number of close substitutes C.the intensity of the need of consumers D.the number of alternative uses of the good

The price elasticity of demand along a demand curve with a constant slope: A.is equal to the slope. B.is greater than the slope. C.is less than the slope. D.increases in absolute value as the price rises.

(Table: Market for Pizza) Look at the table Market for Pizza.In the table, when income changes from $1,000 to $1,400 per month, the income elasticity of demand for pizza at a price of $14 per pizza is: