Exam 5: Elasticities of Demand and Supply

Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent.If the price elasticity of demand for student tickets is 1.22,the price increase leads to

The opportunity cost of producing a good rises only slightly as the quantity produced increases.This good has

If a 20 percent increase in the price of a good does not change the quantity supplied,the

"If the price falls and,as a result,the total revenue decreases,demand is elastic." Is the previous assertion correct?

Pizza Hut lowers the price of its pizza.The price elasticity of demand for Pizza Hut pizza equals 0.3.What happens to the Pizza Hut's total revenue?

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

If wheat can be produced at a constant opportunity cost,then the supply of wheat is

The income elasticity of demand for movies in the United States is 3.41.If people's incomes decrease by 1 percent,what is the decrease in the quantity of movies demanded?

The cross elasticity of demand is a measure of how

Total revenue equals

Suppose a good can be produced using commonly available resources.The elasticity of supply is

Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer.If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels,then using the midpoint method,the price elasticity of supply for barley equals

Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made,the supply of the good ________ from the initial response.

If a decrease in price increases total revenue,what can you determine about the elasticity of demand for the good?

When two goods are related such that an increase in the price of one good decreases the quantity demanded of the other good,these goods are definitely

If a 2 percent change in price leads to a ________ percent change in the quantity demanded,then demand is ________.

The figure above shows the demand curve for Starbucks latte. -In in the figure above,when the price falls from $5 to $4,the price elasticity of demand is

If the quantity supplied and the price change by the same percentage,then supply is

When the price of a burrito increases from $2 to $4,the quantity demanded decreases from 50 to 40.Using the midpoint method,the price elasticity of demand equals

Which of the following is correct? i.All linear demand curves have a constant slope and a constant price elasticity of demand. ii.The price elasticity of demand changes while moving along a downward-sloping linear demand curve. iii.The magnitude of the slope of all linear demand curves is equal to the price elasticity of demand.