Exam 6: Elasticities

If the government wanted a tax to raise a great deal of revenue but not burden consumers much,it would want to tax an industry with:

Unlike its competitors,one glass producer can use its equipment to make either windows for houses or windows for cars.Other things equal,compared to its competitors,its supply curve of windows for cars would be:

If the elasticity of demand coefficient for a good is one-sixth (in absolute terms),we know:

Which of the following pairs of goods would most likely exhibit a cross price elasticity of -1.8?

Exhibit 6-1 The elasticity in the vicinity of five different points along a demand curve varies as follows: Refer to Exhibit 6-1.In the vicinity of which of these points would a price decrease be accompanied by an increase in total revenue?

If the cross elasticity of demand coefficient for potato chips and pretzels equals 1.5:

A tax is imposed on wine.Sellers will bear no burden from this tax if the:

For a given increase in price,a greater elasticity of demand will result in a greater

A steel mill raises the price of steel by 20%,which results in a 7% reduction in the quantity of steel demanded.The demand curve facing this firm is:

Exhibit 6-4 Refer to Exhibit 6-4.With reference to Graph A,at a price of $10,total revenue equals:

Supply is said to be ____ when the quantity supplied is very responsive to changes in price.

If the measured elasticity of supply coefficient equals 1.3,then supply is:

Good A has an income elasticity equal to -1.0 and a cross price elasticity with respect to Good B of 0.9.Then:

What type of demand curve is depicted by the graph below?

If a price decrease leads to an increase in total revenue,demand must be:

When demand and income move in the same direction,a good is said to be:

If a consumer's total expenditure on a good does not vary with price,then that consumer's demand curve is unit elastic over that range of prices.

When the price of ulcer medication increased by $20 per 100 tablets,a drug company's revenue increased by $10 million.Its elasticity of demand coefficient (in absolute terms)must be:

The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89.In order to boost ticket revenues,an economist would advise:

Ceteris paribus,if an 8% increase in price leads to a 6% increase in the quantity supplied,then: