Exam 5: Elasticity

Suppose that a local supermarket sells apples and oranges for 50 cents apiece,and at these prices is able to sell 100 apples and 200 oranges per week.One week,the supermarket lowered the price per apple to 40 cents and sold 120 apples.The next week,they lowered the price per orange to 40 cents (after raising the price per apple back to 50 cents)and sold 240 oranges.These results imply that the

The more narrowly a good is defined,the

When calculating the price elasticity of demand,we assume that the price of the good changes while all other variables affecting

Ink jet printers are a normal good only if,as income falls by a certain percentage,the quantity demanded rises by an even greater percentage.

-In Figure 5-3,the price elasticity of demand between points T and U is the same as between points V and W.

-If demand for a good is represented by curve D' in Figure 5-10,then a decrease in supply of the good will cause

If a 5 percent increase in income leads to a 15 percent increase in the quantity demanded of a service,then the income elasticity of demand for that service equals 0.33.

If demand is unitary elastic,a price decrease results in

An inferior good is

If demand is price elastic,a decrease in price results in a(n)