Exam 2: Elasticities

If the elasticity of supply for a good is greater than the government expected:

The income elasticities of Products A and B and their cross price elasticities with respect to Product C are as follows:??Income ElasticityCross Price ElasticityProduct A-2.1+2.5Product B+0.6-0.75From this information, one can conclude that:

Exhibit The elasticity in the vicinity of five different points along a demand curve varies as follows: Point A B C D E Elasticity 1.25 0.3 1.0 0.2 2.1 -Refer to Exhibit. At which of these points would sellers of a product want to increase price to increase their total revenue?

If the elasticity of supply for a good is greater than the government expected:

If the income elasticity of demand for good A was 3.9 and the income elasticity of demand for B was 0.2:

Exhibit The elasticity in the vicinity of five different points along a demand curve varies as follows: Point A B C D E Elasticity 1.25 0.3 1.0 0.2 2.1 -Refer to Exhibit. In the vicinity of which of these points would sellers of a product want to decrease the price to increase their total revenue?

Exhibit The elasticity in the vicinity of five different points along a demand curve varies as follows: Point A B C D E Elasticity 1.25 0.3 1.0 0.2 2.1 -Refer to Exhibit. In the vicinity of which of these points would a price decrease be accompanied by an increase in total revenue?

For a given change in demand:

The income elasticities of Products A and B and their cross-price elasticities with respect to Product C are as follows:??Income ElasticityCross-Price ElasticityProduct A+1.7-0.6Product B-0.8+0.9From this information, one can conclude that:

The price of a new toy increases from $5 to $7 and the quantity demanded decreases from 12,000 to 6,000 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:

If the elasticity of demand for a good is greater than the government expected:

If a decrease in prices increases total revenue for a product in the short run, in the long run, it will:

If an increase in prices increases total revenue for a product in the short run, in the long run, it will:

The definition of cross-elasticity of demand with regard to two products X and Y is:

An increase in price will cause a firm's total revenue to increase if demand is price elastic.

For a given change in demand:

Exhibit The elasticity in the vicinity of five different points along a demand curve varies as follows: Point A B C D E Elasticity 1.25 0.3 1.0 0.2 2.1 -Refer to Exhibit. At which of these points would a price increase be accompanied by an increase in total revenue?

Exhibit The elasticity in the vicinity of five different points along a demand curve varies as follows: Point A B C D E Elasticity 1.25 0.3 1.0 0.2 2.1 -Refer to Exhibit. In the vicinity of which of these points would sellers find that their total revenue remained essentially unchanged as they changed their price?