Exam 4: Elasticity

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

Assuming elasticity is reported in absolute value,an inelastic demand has a measured elasticity:

If the price of hairbrushes decreases by 20 percent,the quantity demanded increases by 2 percent.the price elasticity of demand is:

The percentage change in the quantity demanded of a good or service when its price changes by one percent is:

An increase in price:

The concept of elasticity can be used to measure responses to a change in:

Price elasticity of demand describes:

A determinant of the price elasticity of supply that is also a determinant of the price elasticity of demand is:

Suppose that when the price of novels goes from $15 to $20 per book,production increases from 550 million books per year to 800 million books.Using the mid-point method,the price elasticity of supply would be:

A perfectly inelastic demand:

Assuming elasticity is reported in absolute value,a measured price elasticity of demand of 0.4 would indicate:

Which of the following is most likely to have an income elasticity between 0 and 1?

If the cross-price elasticity of two goods is 0.25,then we know that:

If the price of butter changes by 5 percent,we observe a 25 percent change in the quantity demanded of margarine.The cross-price elasticity of these goods is:

Suppose when the price of a can of tuna is $1,the quantity demanded is 250,and when the price is $2,the quantity demanded is 100.Using the mid-point method,the price elasticity of demand is:

It is most likely for which of the following to have an income elasticity greater than zero?

Elasticity measures:

The response in demand of a price increase in subways rides:

Assuming elasticity is reported in absolute value,a measured elasticity of one implies:

Mathematically,price elasticity of demand is: