Exam 5: Elasticities of Demand and Supply

When the price of a product increases from $35 to $45,the quantity supplied increases from 30 units to 40 units per week.Using the midpoint method,the price elasticity of supply is

-The demand curve shown in the figure above is ________ over the price range from $0.90 to $1.10 per pack.

During the winter of 2011-2012,the price of fuel oil increased enormously but the quantity demanded decreased only a little.This response indicates that the demand for fuel oil was

Patrick lives near two gas stations,Exxon and Shell.If Exxon decreases the price of gas,we predict that the quantity of gasoline demanded at Shell will

The figure above shows the supply curve for roses. -Suppose a decrease in supply raises the price from $4.00 to $5.50 and decreases the quantity demanded from 2,000 to 1,500.Using the midpoint method,the elasticity of demand equals

If the price elasticity of supply for a good is 10,then supply is

Demand for a product tends to be more elastic the longer the time period considered because

The price of coffee rose 40 percent and the quantity of coffee demanded fell by 20 percent.The quantity of doughnuts demanded also fell by 20 percent.From this information,we can conclude that

What happens to the price elasticity of demand moving down along a downward-sloping,linear demand curve?

If a small percentage change in the price brings a very large percentage change in the quantity supplied,then the supply is almost perfectly ________ and the supply curve is almost ________.

If demand is ________,a price cut ________ the total revenue.

If the supply curve is ________,the elasticity of supply is ________.

When income increases from $20,000 to $30,000 the quantity of inter-city bus trips taken per year decreases from 10 to 8.Hence

If the price elasticity of demand for opera tickets in Orlando is 1.00,then the demand for opera tickets in Orlando is

Recently the governor of Vermont proposed that cigarette taxes in Vermont should be increased substantially,from 44 cents a pack to 66 cents a pack.He estimates that Vermont can raise $20 million in revenue from this tax hike.He also pointed out that the neighboring state of New Hampshire was considering an increase in cigarette taxes. a.How can it be that an increase in cigarette taxes will increase tax revenue,because,after all,a higher tax will increase cigarette prices and thereby decrease the quantity demanded? b.If New Hampshire chooses not to increase cigarette taxes,is it likely that Vermont can still raise $20 million in tax revenue? Why or why not? Explain

When the price of Cosmopolitan magazine decreases from $5 to $3,the quantity demanded increases from 600,000 to 1,000,000 copies each month.Using the midpoint method,the price elasticity of demand equals

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300,using the midpoint formula the elasticity of supply equals

If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases from 900,000 bottles to 845,000 bottles,using the midpoint method,what is the price elasticity of demand for suntan lotion?

The income elasticity of demand is the percentage change in the ________ divided by the percentage change in ________.

A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded.The price elasticity of demand is equal to