Exam 5: Elasticity and Its Application

Japan is a major world supplier of semiconductor chips.A recent earthquake severely damaged the production facilities of Japanese chip-producing companies,sharply reducing the amount of chips they could produce. a.Assume that the total revenue of a typical non-Japanese chip manufacturer rises due to these events.In terms of the elasticity of demand,what must be true for this to happen b.Now assume that the total revenue of a typical non-Japanese chip manufacturer falls due to these events.In terms of the elasticity of demand,what must be true for this to happen

Why was OPEC successful in raising the world price of oil in the 1970s and early 1980s

As the price elasticity of demand decreases,what happens to the slope of the linear demand curve

When quantity moves proportionally the same amount as price,what can be said of demand and its price elasticity

If a 5 percent increase in price causes a 15 percent decrease in quantity demanded,what might be said about this product

When is demand said to be elastic

You and your college roommate eat three packages of ramen noodles each week.After graduation last month,both of you were hired at several times your college income.You still enjoy ramen noodles very much and buy even more,but your roommate plans to buy other foods she prefers over ramen noodles.What are you and your roommate's income elasticities of demand for ramen noodles

What happens in the case of perfectly inelastic demand

In the market for oil in the short run,what are demand and supply

When quantity demanded responds only slightly to changes in price,what is demand said to be