Exam 20: Consumer Choice and Elasticity

A local Krispy Kreme doughnut shop reduced its prices by 10 percent,and as a result,the quantity of doughnuts sold increased by 25 percent. Over this range,the absolute value of the price elasticity of demand was

Figure 7-15 -Refer to Figure 7-15.Along which of these segments of the supply curve is supply most elastic?

Figure 7-3 -Figure 7-3 depicts a demand curve with a price elasticity that is

Assume that a college student purchases only coffee and Snickers.The substitution effect associated with a decrease in the price of a Snickers will result in

Figure 7-2 -Figure 7-2 depicts a demand curve with a price elasticity that is

Figure 7-1 -Figure 7-1 depicts a demand curve with a price elasticity that is

The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller.The airlines base the policy on the assumption that

Jane received a 10 percent increase in her salary and purchased 20 percent more jewelry.For Jane,jewelry

Assuming that bus travel is an inferior good,a decrease in consumer income,other things being equal,will cause

When the price of designer jeans goes from $85 to $60,the quantity demanded increases from 100,000 to 120,000.Over this price range,the

Muriel's income elasticity of demand for football tickets is 1.5.All else equal,this means that if her income increases by 20 percent,she will buy

"I like ice cream,but after eating homemade ice cream last night,I want to have something else for dessert today." This statement most clearly reflects

The price elasticity of demand for automobiles measures the responsiveness of

Figure 7-15 -Refer to Figure 7-15.Along which of these segments of the supply curve is supply least elastic?

New York City increased regulated taxi fares by 17.5 percent and expected taxi revenue to increase by the same amount.The taxi commission believed taxi demand was

Which one of the following goods would likely have the most inelastic demand?

Figure 7-12 -Refer to Figure 7-12.An increase in price from $30 to $35 would

A good that takes up a very large percentage of the consumer's budget will tend to have

Mark complains: "I can't believe they raised the price of comic books,and because of this,I'm going to reduce my demand for comic books." Is Mark stating the concept of demand correctly?

If the price of gasoline goes up,and Dan now buys fewer candy bars because he has to spend more on gas,this would best be explained by