Exam 5: Elasticity and Its Application

When the price of bubble gum is $0.50,the quantity demanded is 400 packs per day.When the price falls to $0.40,the quantity demanded increases to 600.Given this information and using the midpoint method,we know that the demand for bubble gum is

A manufacturer produces 1,000 units,regardless of the market price.For this firm,the price elasticity of supply is

Which of the following statements is not correct concerning government attempts to reduce the flow of illegal drugs into the country? Drug interdiction

Figure 5-13 -Refer to Figure 5-13.Over which range is the supply curve in this figure the most elastic?

For a good that is a luxury,demand

Figure 5-6 -Refer to Figure 5-6.Which of the following price changes would result in no change in sellers' total revenue?

Suppose researchers at the University of Wisconsin discover a new vitamin that increases the milk production of dairy cows.If the demand for milk is relatively inelastic,the discovery will

Figure 5-13 -Refer to Figure 5-13.Over which range is the supply curve in this figure the least elastic?

If a 40% change in price results in a 25% change in quantity supplied,then the price elasticity of supply is about

Which of the following expressions is valid for the price elasticity of demand?

A 10 percent increase in gasoline prices reduces gasoline consumption by about

If a 6% decrease in price for a good results in a 2% increase in quantity demanded,the price elasticity of demand is

Which of the following is likely to have the most price inelastic demand?

Scenario 5-2 The supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10%. -Refer to Scenario 5-2.Total consumer spending on aged cheddar cheese will

Figure 5-10 -Refer to Figure 5-10.An increase in price from $20 to $30 would

Table 5-3 The following table shows the demand schedule for a particular good. -Refer to Table 5-3.Using the midpoint method,when price falls from $6 to $3,the price elasticity of demand is

The price elasticity of demand for eggs

Which of the following is likely to have the most price elastic demand?

Table 5-2 -Refer to Table 5-2.Using the midpoint method,if the price falls from $80 to $60,the absolute value of the price elasticity of demand is

Holding all other forces constant,if increasing the price of a good leads to a decrease in total revenue,then the demand for the good must be