Exam 4: Elasticity

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Of the following, demand is likely to be the least elastic for

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Propecia was developed to treat mild to moderate male pattern hair loss in men. Marco has hair loss and he is willing to pay any amount of money to be able to buy this drug each month. Marco's price elasticity of demand is

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Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent. What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software?

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Of the following, demand is likely to be the least elastic for

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If the elasticity of supply is 4, a 10 percent increase in the price of a good leads to a

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If goods A and B are complements, then

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Last year in the United States, the price of snowboards rose by 5 percent and the price rise resulted in a 15 percent increase in the quantity supplied. This outcome is an indication that

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The price elasticity of demand for meat in general is inelastic while the price elasticity of demand for turkey or chicken is more elastic. Why?

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If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?

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If your demand for a good is ________, then a 1 percent fall in its price will lead you to ________ your expenditures on the good.

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If a 5 percent increase in the price of good A leads to a 4 percent decrease in the demand for good B, then

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If the demand curve for a good is a downward sloping straight line, the demand for the good will be more price elastic the higher is the

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By reviewing its sales records, Dell economists discover that when Dell lowers the price of its personal computers, the total revenue Dell obtains from the sale of its personal computers rises. Hence

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The worst drought in over 50 years has decimated crops of soy beans and corn in the United States. (Source: New York Times, August 10, 2012). Because the production of corn has decreased, prices are expected to increase by 25 percent. These data are insufficient for calculating the elasticity of demand because we also need to know the

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The cross elasticity of demand between apples and oranges is defined as the

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Demand is inelastic when a price ________ results in total revenue ________.

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If the price of gasoline rose from $2.85 to $2.95 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals

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Goods whose income elasticities are negative are called

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A rise in the price of good A shifts the ________ good B rightward if the cross elasticity of demand between A and B is ________.

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If a rise in the price of good 1 decreases the quantity of good 2 demanded

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