Exam 5: Elasticity and Its Application

For a particular good,a 12 percent increase in price causes a 3 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

Figure 5-6 -Refer to Figure 5-6.Using the midpoint method,the price elasticity of demand between point B and point C is

For a particular good,a 5 percent increase in price causes a 2 percent decrease in quantity demanded.Which of the following statements is most likely applicable to this good?

The price elasticity of demand changes as we move along a

Demand is said to be inelastic if the

A key determinant of the price elasticity of supply is the

For a vertical demand curve,

For which pairs of goods is the cross-price elasticity most likely to be positive?

Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in the quantity of X demanded.Price elasticity of demand for X is

Last year,Carolyn bought 6 pairs of earrings when her income was $40,000.This year,her income is $52,000,and she purchased 7 pairs of earrings.Holding other factors constant,it follows that Carolyn's income elasticity of demand is about

When the price of a bracelet was $25 each,the jewelry shop sold 20 per month.When it raised the price to $35 each,it sold 14 per month.Using the midpoint method,the price elasticity of demand for bracelets is about

Figure 5-4 -Refer to Figure 5-4.The section of the demand curve from B to C represents the

A key determinant of the price elasticity of supply is

If the cross-price elasticity of demand for two goods is -4.5,then

Figure 5-13 -Refer to Figure 5-13.Using the midpoint method,what is the price elasticity of supply between $16 and $40?

The price elasticity of supply along a typical supply curve is

There are fewer farmers in the United States today than 200 years ago because of

When quantity demanded responds strongly to changes in price,demand is said to be

Table 5-1 -Refer to Table 5-1.Which of the following is consistent with the elasticities given in Table 5-2?

If the demand for apples is elastic,then an increase in the price of apples will