A) total amount of money a firm takes in. B) difference between total revenue and total costs. C) difference between the price of a good and its total revenue. D) total amount of sales a firm has. A) total amount of money a firm takes in. B) difference between total revenue and total costs. C) difference between the price of a good and its total revenue. D) total amount of sales a firm has.

Exam 6: Elasticity

Ray is one of many sellers of furniture in a large city that has many furniture stores. If he tries to raise the price of a sofa even slightly, he loses all of his business to one of his competitors. The demand for Ray's sofas is:

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Question 1

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If Ana's income elasticity of demand for rice is -2, what happens to the quantity of rice she buys if her income decreases by 20 percent?

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Question 2

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Suppose that a 20 percent increase in the price of throw pillows leads to a 60 percent decrease in the quantity demanded of throw pillows. What is the price elasticity of demand for throw pillows? If a seller of this good wants to change the price in order to increase total revenue from selling throw pillows, what should it do? Explain.

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Question 3

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Mathematically, this is expressed as -60%/20% = -3. The price elasticity of demand for throw pillows is 3. A price elasticity of demand of 3 indicates an elastic price elasticity of demand. A seller should decrease the price of this good to increase total revenue. When demand is elastic, the percentage change increase in quantity demanded will be larger than the percentage change decrease in the price of the good.

If an economist wants to know if two goods are complements or substitutes, which is the appropriate elasticity to calculate?

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Question 4

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. What can be concluded based on tax incidence in this market? Figure: A Tax on the Demand for a Good II

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Question 5

When Otto's income increases, he buys fewer frozen vegetables. Based on this, we can conclude that:

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Question 6

Use the figure A Tax on the Demand for a Good). If we know that the price elasticity of demand is larger than the price elasticity of supply, what is true? Figure: A Tax on the Demand for a Good

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Question 7

List the factors that determine whether a good has an inelastic price elasticity of demand.

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Question 8

If consumers' response to a price change is a relatively large change in the quantity demanded, then the price elasticity of demand is _____, and demand is considered to be:

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Question 9

The percentage change in quantity supplied in response to the percentage change in price is the:

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Question 10

An economist has determined that the income elasticity of demand for a movie streaming service is 1.2. How should she interpret this value?

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Question 11

Seamus sells 100 party hats when the price of party hats is $10 and sells 120 party hats when the price of party hats is $15. Seamus's price elasticity of supply is:

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Question 12

The price elasticity of demand for tambourines is 0.25, and the price elasticity of supply for tambourines is 2. What happens if an excise tax is placed on the sellers of tambourines?

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Question 13

How is price elasticity of demand calculated?

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Question 14

(Use Figure: A Demand Curve) Use the figure A Demand Curve. What kind of demand does this good have? Figure: A Demand Curve

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Question 15

Profit is the:

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Question 16

The sign of the cross-price elasticity of demand:

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Question 17

A good that a consumer always buys more of when income increases is:

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Question 18

A seller wants to increase its total revenue and decides to increase its price to do so. This seller thinks that the demand for its good is:

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Question 19

What happens to the price elasticity of demand as price increases and you move from right to left along a demand curve?

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Question 20

Showing 1 - 20 of 126

Ray is one of many sellers of furniture in a large city that has many furniture stores. If he tries to raise the price of a sofa even slightly, he loses all of his business to one of his competitors. The demand for Ray's sofas is:

If Ana's income elasticity of demand for rice is -2, what happens to the quantity of rice she buys if her income decreases by 20 percent?

If an economist wants to know if two goods are complements or substitutes, which is the appropriate elasticity to calculate?

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. What can be concluded based on tax incidence in this market? Figure: A Tax on the Demand for a Good II

When Otto's income increases, he buys fewer frozen vegetables. Based on this, we can conclude that:

Use the figure A Tax on the Demand for a Good). If we know that the price elasticity of demand is larger than the price elasticity of supply, what is true? Figure: A Tax on the Demand for a Good

List the factors that determine whether a good has an inelastic price elasticity of demand.

If consumers' response to a price change is a relatively large change in the quantity demanded, then the price elasticity of demand is _____, and demand is considered to be:

The percentage change in quantity supplied in response to the percentage change in price is the:

An economist has determined that the income elasticity of demand for a movie streaming service is 1.2. How should she interpret this value?

Seamus sells 100 party hats when the price of party hats is $10 and sells 120 party hats when the price of party hats is $15. Seamus's price elasticity of supply is:

The price elasticity of demand for tambourines is 0.25, and the price elasticity of supply for tambourines is 2. What happens if an excise tax is placed on the sellers of tambourines?

How is price elasticity of demand calculated?

(Use Figure: A Demand Curve) Use the figure A Demand Curve. What kind of demand does this good have? Figure: A Demand Curve

Profit is the:

The sign of the cross-price elasticity of demand:

A good that a consumer always buys more of when income increases is:

A seller wants to increase its total revenue and decides to increase its price to do so. This seller thinks that the demand for its good is:

What happens to the price elasticity of demand as price increases and you move from right to left along a demand curve?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 6: Elasticity

Ray is one of many sellers of furniture in a large city that has many furniture stores. If he tries to raise the price of a sofa even slightly, he loses all of his business to one of his competitors. The demand for Ray's sofas is:

If Ana's income elasticity of demand for rice is -2, what happens to the quantity of rice she buys if her income decreases by 20 percent?

If an economist wants to know if two goods are complements or substitutes, which is the appropriate elasticity to calculate?

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. What can be concluded based on tax incidence in this market? ​ Figure: A Tax on the Demand for a Good II

When Otto's income increases, he buys fewer frozen vegetables. Based on this, we can conclude that:

Use the figure A Tax on the Demand for a Good). If we know that the price elasticity of demand is larger than the price elasticity of supply, what is true? ​ Figure: A Tax on the Demand for a Good

List the factors that determine whether a good has an inelastic price elasticity of demand.

If consumers' response to a price change is a relatively large change in the quantity demanded, then the price elasticity of demand is _____, and demand is considered to be:

The percentage change in quantity supplied in response to the percentage change in price is the:

An economist has determined that the income elasticity of demand for a movie streaming service is 1.2. How should she interpret this value?

Seamus sells 100 party hats when the price of party hats is $10 and sells 120 party hats when the price of party hats is $15. Seamus's price elasticity of supply is:

The price elasticity of demand for tambourines is 0.25, and the price elasticity of supply for tambourines is 2. What happens if an excise tax is placed on the sellers of tambourines?

How is price elasticity of demand calculated?

(Use Figure: A Demand Curve) Use the figure A Demand Curve. What kind of demand does this good have? ​ Figure: A Demand Curve

Profit is the:

The sign of the cross-price elasticity of demand:

A good that a consumer always buys more of when income increases is:

A seller wants to increase its total revenue and decides to increase its price to do so. This seller thinks that the demand for its good is:

What happens to the price elasticity of demand as price increases and you move from right to left along a demand curve?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Supply

Market Equilibrium

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Use the figure A Tax on the Demand for a Good II. A $6 excise tax has been placed on this market. What can be concluded based on tax incidence in this market? Figure: A Tax on the Demand for a Good II

Use the figure A Tax on the Demand for a Good). If we know that the price elasticity of demand is larger than the price elasticity of supply, what is true? Figure: A Tax on the Demand for a Good

(Use Figure: A Demand Curve) Use the figure A Demand Curve. What kind of demand does this good have? Figure: A Demand Curve