Exam 4: Elasticity

The cross elasticity of demand for good A with respect to the price of good B is -1.5. A 10 percent rise in the price of good B will lead to

The elasticity of supply for airplane travel one day in advance of the departure date is most likely to be

The concept used by economists to indicate the responsiveness of the quantity demanded of a good to a change in its price is the

A vertical supply curve

If the cross elasticity of demand between goods A and B is negative, then

The elasticity of supply is a units-free measure of the responsiveness of the

If the cross elasticity of demand between beef and bison is 1.5, then a 3 percent increase in the price of beef will lead to

The price elasticity of demand for airplane travel one year in advance of the departure date is most likely to be

The cross elasticity of demand between any two goods is defined as the

If the demand for good Z is perfectly inelastic, then the demand curve for good Z is

The demand for a good is price elastic if

Use the figure below to answer the following questions. Figure 4.1.2 -Figure 4.1.2 illustrates a linear demand curve. If the price falls from $4 to $2,

When the price of a good increased by 5 percent, the quantity demanded of it decreased 10 percent. The price elasticity of demand is ________. A price rise will ________ total revenue.

Luxury goods tend to have income elasticities of demand that are

The longer the time that has elapsed since a price change the more time consumers will have to respond to price changes. As a result, demand becomes

When Erika's income increases by 6 percent, her demand for tickets to professional hockey games increases by 3 percent. Erika's demand for tickets is income ________. For Erika, hockey tickets are ________ good.

The demand for a good will be more price inelastic,

If a rise in the price of good A from $9 to $11 results in an increase from 9,500 to 10,500 units supplied, then

Supply is elastic if

The demand for good A is unit elastic if