Exam 5: Elasticity and Its Applications

If the supply curve for news magazines is an upward-sloping line and goes through the point (quantity supplied = 0,price = $1.00),then the price elasticity of supply for news magazines is

If the price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent as a result,then the price elasticity of demand is 3.

A linear,upward-sloping supply curve has

A perfectly inelastic demand implies that buyers

If the price elasticity of supply is 1.5 and a price increase led to a 1.8% increase in quantity supplied,then the price increase amounted to

Total revenue will be at its largest value on a linear demand curve at

Necessities such as food and clothing tend to have

Suppose you calculate the price elasticity of demand for a certain good and you report that the elasticity is 0.8.The fact that the elasticity is a positive number means that

The price elasticity of supply measures how much

If the demand for donuts is elastic,then a decrease in the price of donuts will

If the cross-price elasticity of two goods is negative,then those two goods are

Figure 5-6 -Refer to Figure 5-6.A decrease in price from $15 to $10 leads to

Figure 5-4 -Refer to Figure 5-4.As price falls from PA to PB,we could use the three demand curves to calculate three different values of the price elasticity of demand.Which of the three demand curves would produce the smallest elasticity?

Table 5-2 -Refer to Table 5-2.Which of the three supply curves represents the most elastic supply?

Holding all other factors constant and using the midpoint method,if a pencil manufacturer increases production by 20 percent when the market price of pencils increases from $0.50 to $0.60,then supply is

Farm programs that pay farmers not to plant crops on all their land

Figure 5-2 -Refer to Figure 5-2.The price elasticity of demand between point A and point B,using the midpoint method,is

The price elasticity of demand changes as we move along a

A decrease in supply will cause the largest increase in price when

If a person only occasionally buys a cup of coffee,his demand for coffee is probably