Exam 4: Elasticity

The price elasticity of supply tells us:

The mid-point method of calculating elasticity:

Economists use the percentage change in quantity rather than the absolute change in quantity because:

When a large percentage change in price causes a small percentage change in the quantity demanded,we say that they have a:

If the price of jelly goes up by 10 percent,we observe a decrease in the quantity demanded of peanut butter of 20 percent.The cross-price elasticity of these goods is:

Suppose that when the price of pizza goes from $7 to $10 per pie,production increases from 2,500 pies per month to 4,000 pies.Using the mid-point method,the percentage change in price would be:

If the quantity effect outweighs the price effect of a price increase,then:

A pound of coffee is _________________ than a pound sugar of because ________________.

Novels are _____________ than textbooks because __________________.

Shoes are ___________________ than sneakers because __________________.

The most commonly used measures of elasticity are:

Farmfresh brand apple juice is likely to be:

When the quantity effect outweighs the price effect:

Income elasticity of demand describes:

If the price of a Domino's pizza decreases,while the price of a Pizza Hut pizza doesn't,we expect the quantity of Pizza Hut pizza demanded to:

If a good has an income elasticity of 0.18,which of the following can be said about it?

A movie ticket is _________________ than a ticket to a Broadway show because ______________.

Knowing the price elasticity of demand is important in business because:

If the price of a cup of coffee increases by 50 percent,the quantity demanded decreases by 50 percent.The price elasticity of demand is:

When two goods are substitutes,we expect their cross-price elasticity of demand to: