Exam 6: Elasticity: the Responsiveness of Demand and Supply

Which of the following could explain why the demand for table salt is inelastic?

Suppose a decrease in the supply of bottled water results in a decrease in revenue.This indicates that

Bringing oil to the market is a relatively long and costly process.The whole process from exploration to pumping significant amounts of oil can take years.What does this indicate about the price elasticity of supply for oil?

If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is

When the price of tortilla chips rose by 10 percent, the quantity of tortilla chips sold fell 4 percent.This indicates that the demand for tortilla chips is

Supply is elastic whenever the value of the elasticity of supply is positive and greater than 1.

Since 1950, there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

The price elasticity of an upward-sloping supply curve is always

The demand for heating oil in the short run is more elastic than the long run demand for heating oil.

Figure 6-10 -Refer to Figure 6-10.A perfectly elastic supply curve is shown in

When there few close substitutes available for a good, demand tends to be

Which of the following items is likely to have the highest income elasticity of demand?

Barbara, the consummate hostess, proudly announced as she served dessert, "A port is often the perfect end to a meal, sipped with a piece of my scrumptious chocolate cake." Evidently, Barbara views port and chocolate cake as

Last year, Joan bought 50 pounds of hamburger when her household income was $40,000.This year, her household income was only $30,000 and Joan bought 60 pounds of hamburger.Holding everything else constant, Joan's income elasticity of demand for hamburger is

If demand for a product is perfectly inelastic, a change in price will not change total revenue.

If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel is

Which of the following statements about the price elasticity of demand along a downward-sloping linear demand curve is true?

If, for a given percentage decrease in price, quantity supplied decreases by a proportionately smaller percentage, then supply is

If a good has a negative income elasticity of demand, this indicates that the good is

According to a study of the price elasticities of products sold in supermarkets, the price elasticity of demand for toothpaste is estimated at -0.45.Which of the following could explain why the price elasticity of demand for toothpaste is so low?