Exam 6: Elasticities

The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game.If other things remained constant,then it appears that the price elasticity of demand is:

Which of the following is true of perfectly elastic supply?

The formula for calculating the cross price elasticity of demand is:

Exhibit 6-3 Refer to Exhibit 6-3.The graph that best illustrates a perfectly elastic demand curve is

A 10% decrease in the price of energy bars leads to a 20% increase in the quantity of energy bars demanded.It appears that:

Price elasticity of demand is a measure of the relative responsiveness of the change in price to a change in quantity demanded.

Certain goods are related so that an increase in the price of one good decreases the demand for the other.These goods are:

Chicken and fish are substitutes.Therefore,the cross elasticity of demand between chicken and fish should be:

If the short run elasticity of demand for a good was greater than 1,an increase in the price of the good would tend to:

If the cross price elasticity of demand for tacos with respect to burritos equals +2.5,then:

If the supply curve for housing is perfectly inelastic,a reduction in demand will cause the equilibrium price to:

If a university charged a lower price for tuition during summer school than during the regular session,in search of added total revenue,

If the demand curve for a product is vertical,then the elasticity of demand is:

The larger the proportion of income spent on a product,other things equal,the:

The government proposes a tax on flowers in order to boost its revenue.Consumers will bear no part of this tax if the:

Good A has an income elasticity equal to 1.0 and a cross price elasticity with respect to Good B of -0.6.Then:

Exhibit 6-2 Refer to Exhibit 6-2.Along a linear demand curve,price elasticity of demand is:

Assume that the elasticities of supply and demand in an industry are both equal to 2 and that it is currently untaxed.A new tax imposed on the industry will:

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

Calculate the elasticity of supply when an increase in demand causes the equilibrium price and quantity to change from $2.00 and 500 to $2.80 and 1,000,respectively.