Exam 4: Elasticity

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.

The income elasticity of demand is largest for

Tina and Brian work for the same recording company. Tina claims they would be better off by raising the price of their CDs, while Brian claims they would be better off by lowering the price. Choose the correct statement.

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

Suppose your annual income is $65 000 and your favourite magazine costs you $28 a year.Your demand for the magazine is likely to be

The demand for orange juice is price elastic.A severe frost, which destroys large quantities of oranges will

Use the table below to answer the following question. Table 4.2.1 -Consider the information in Table 4.2.1.Select the best statement.

If a 10 percent increase in price results in an 18 percent increase in quantity supplied, the elasticity of supply is

When price rises from $1.50 to $2.50, quantity supplied increases from 9,000 to 11,000 units.What is the price elasticity of supply?

Which of the following will have the most elastic demand?

An economic measure that indicates when the demands for two or more goods are related is

If the quantity of chicken demanded increases by 1.25 percent when the price of beef increases by 2.5 percent, the cross elasticity of demand between chicken and beef is

If a 10 percent increase in income results in a 5 percent increase in quantity demanded, what is the income elasticity of demand?

Factors that influence the price elasticity of demand include

Business people speak about income elasticity of demand without using the actual term. Which one of the following statements reflects income elasticity of demand?

When the quantity of coal is measured in kilograms instead of pounds, the demand for coal becomes

If a turnip is a normal good then

Use the table below to answer the following question. Table 4.1.5 -Refer to Table 4.1.5.The demand for hotel rooms is ________ because ________.

You are told that a 5 percent increase in the price of a good increases the quantity supplied by 10 percent after one month.Supply of this good is ________.This good is most likely produced using productive resources that are ________.

If the demand for a good is unit elastic, then a 5 percent increase in price results in