Exam 6: Elasticity

Use the table The Price Elasticity of Demand for Paola's Equipment. Paola sells equipment for makerspaces, and the price elasticity of demand for the goods that she sells is given in the table below. Total revenue decreases for which of the following goods if she lowers the price? ​

Use the table The Price Elasticity of Demand for Paola's Equipment. Paola sells equipment for makerspaces, and the price elasticity of demand for the goods that she sells is given in the table below. Which good does NOT have an elastic demand? ​

If the cross-price elasticity of demand is equal to -0.5, it can be concluded that:

Use the table Price Elasticities of Demand for Four Goods. If the seller of each good lowers the price by a given percentage, which good(s) will generate more total revenue? ​

When Charles lowers the price of cheese plates by 25 percent, the quantity demanded increases by 50 percent. The demand for cheese plates is _____, and Charles' total revenue _____ as a result of the price change.

The price elasticity of supply of lamps is 1, and the price elasticity of demand for lamps is 1.5. What happens if a sales tax is placed on buyers of lamps?

Use the figure A Tax on the Demand for a Good. Which area represents the seller's burden of this tax? ​ Figure: A Tax on the Demand for a Good

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price increases from $11 to $13? ​ Figure: The Demand for Scented Candles

Use the table Price Elasticities of Demand for Four Goods I. If the price of each of these goods increases by 1 percent, which good will have the largest percentage decrease in quantity demanded?

Theodore's income increased by 20 percent last year, and as a result, the quantity of boxes of breakfast cereal that he bought increased by 15 percent. Calculate the appropriate elasticity based on this information, and interpret your results.

Sinead raises the price of the combo meals that she sells by 30 percent, and as a result the quantity demanded of combo meals decreases by 15 percent. The demand for combo meals is _____, and Sinead's total revenue _____ as a result of the price change.

A good with an income elasticity between 0 and 1 is:

(Use Figure: The Demand for Scented Candles) Use the figure The Demand for Scented Candles. What is the price elasticity of demand when price decreases from $6 to $4? ​ Figure: The Demand for Scented Candles

In which of the following situations would a good NOT have a relatively inelastic demand?

Use the table Price Elasticities of Demand for Four Goods I. If the price of each of these goods increases, which good will have no change in the amount of total revenue earned from selling it? ​

When a consumer's change in quantity demanded for a product is relatively smaller than the change in the price of that product, then demand is considered to be:

When the price of magazines decreases by 10 percent, Efrain buys 10 percent more magazines. Efrain's price elasticity of demand is equal to _____, and his demand is:

Households typically pay a large share of their income on housing. An economist would expect the demand for housing to be:

A good is considered to have an elastic demand when the price elasticity of demand is:

Eli receives a 10 percent bonus at his job and as a result decreases the quantity of movie tickets that he buys by 10 percent. Calculate the appropriate elasticity based on this information, and interpret your results.