Exam 6: Demand and Elasticity

At $6 per steak, consumers are willing to buy two steaks.At a price of $2, consumers are willing to buy six steaks.The elasticity of the market demand curve between P = $6 and P = $2 (dropping all minus signs) is

In an attempt to raise sales, Hannah cut prices in her bookstore by 20 percent.If the dollar value of her sales remained constant, that indicates

Suppose that Carol owns a property with a mineral spring.It costs zero for Carol to sell water to customers since buyers come to her property and bring their own bottles and fill them themselves.If Carol wants to maximize her profits from the sale of her mineral water, she should choose the output level

Figure 6-3 -In Figure 6-3(b), as price falls from $15 to $6, total expenditure

When OPEC raises the price of petroleum, American expenditures on oil imports increase, suggesting that

The difference between slope and elasticity is that slope measures absolute change and elasticity measures percentage change.

How would an increase in cigarette taxes succeed according to the following criteria: collecting a large amount of tax revenue; distorting demand as little as possible; discouraging consumption of harmful commodities?