Exam 4: Elasticity

A good with a unit elastic demand has a:

If the price of a DVD decreases by 50 percent,the quantity demanded increases by 75 percent.The price elasticity of demand is:

The mid-point method of calculating elasticity is typically used because:

If a manager multiplies the quantity sold by the price paid for each unit,the manager calculates:

A good with an income elasticity of 2.3 is:

Total revenue is the amount:

The demand for a specific brand of corn flakes cereal is likely to be:

If total revenue increases when price increases:

The cross-price elasticity of two goods is 2.This tells us the two goods are:

The price elasticity of demand for eggs is 0.27.Therefore,an increase in the price of eggs will cause:

Suppose when the price of shoe laces goes from $1 to $2 per pair,production increases from 95 million pairs to 105 million pairs per year.Using the mid-point method,the price elasticity of supply is:

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

For many consumers,bacon and eggs are complements.Therefore,egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is

The demand for a pack of gum is ______________ than is the demand for a steak because _______________.

The demand for spring break vacations is _________________ than is the demand for textbooks because ________________.

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

If a good has unitary price elasticity of demand,then the absolute value of the percentage change in

If two goods are substitutes,then their cross-price elasticity of demand is

A perfectly elastic demand:

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