Exam 20: Consumer Choice and Elasticity

If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent,the price elasticity of demand is ____,indicating the demand is ____.

A question on an economics exam asks: What happens in the market for margarine when income rises? Allison,an excellent student,shows the demand for margarine decreasing.Is she necessarily wrong? Why or why not?

Use the figure below to answer the following question(s). Figure 7-6 -Between $3 and $4,the price elasticity of the demand curve depicted in Figure 7-6 is

Figure 7-12 -Refer to Figure 7-12.An increase in price from $20 to $30 would

An increase in the price of computer diskettes leads to an increase in total expenditures on the diskettes.Which of the following is true for this price change?

Figure 7-14 -Refer to Figure 7-14.Which supply curve represents perfectly inelastic supply?

How does the concept of elasticity allow us to improve upon our understanding of supply and demand?

If Jane's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans,

The market demand for a good is

Which of the following statements is true regarding the price elasticity of supply?

In economic theory,the word "demand" refers to

Figure 7-10 -Figure 7-10 depicts a demand curve with a price elasticity that is

When the price of a good falls,consumers buy more of the good because it is cheaper relative to competing goods.This statement describes the

Suppose the athletic department wanted to increase revenues by decreasing ticket prices to football games.This would make sense only if the price elasticity of demand for football games was (in absolute value)

Use the diagram below to answer this question. For this demand curve,the price elasticity of demand is

If a Pizza Hut restaurant near campus reduces its pizza prices by 15 percent,and as a result,its total revenue from pizza sales increases,this indicates that the price elasticity of demand was

If the price of apples increases,total expenditures on apples will decline if

A normal good is defined by economists to be a good

When the price elasticity of demand is large,then

When the price of a product increases,the passage of time usually causes the price elasticity of demand for the product to become