Exam 20: Consumer Choice and Elasticity

The number of CDs purchased increased by 5 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as

The demand for Chocolate Chip Cookie Dough ice cream is likely quite elastic because

All things equal, the price elasticity of supply

Figure 7-8 -For a price increase from $10 to $11, the price elasticity of the demand curve depicted in Figure 7-8 is

Demand will be more elastic when

Tele-Com, Inc., a large cable TV company, tested the effect of a price reduction for the Disney Channel. It lowered prices from $10.75 to $7.95 and found that the number of customers more than doubled. This means the

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

When demand is price inelastic,

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

A recent increase in the supply of oranges caused the price to drop from $5 to $3 per bushel, and quantity demanded to rise from 10,000 bushels to 25,000 bushels. This indicates that the price elasticity of demand for oranges in this price range is

After eating six chocolate candy bars in ten minutes, Jody says, "You would have to pay me to eat another chocolate candy bar!" This statement best illustrates

When a good is more broadly defined,

Which of the following most directly reflects the law of diminishing marginal utility?

If a 20 percent reduction in the price of airline tickets between Chicago and New York leads to a 50 percent increase in the quantity of tickets purchased, the price elasticity of demand for the tickets is

If the quantity demanded of a product fell from 11,000 to 10,000 when price rose from $9 to $10, the price elasticity of demand over this range is equal to approximately

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

In economic theory, the word "demand" refers to

The exhibit illustrates two possible demand curves for a product, D₁ and D₂. Which of the following is true regarding these demand curves?

In which of the following cases will the total spending on a good decrease?

How does the concept of elasticity allow us to improve upon our understanding of supply and demand?