Exam 3: The Concept of Elasticity and Consumer and Producer Surplus

For a linear and upward sloping supply curve, when the consumer has to pay a positive price for the good, the variable cost to the producer consumer is a

Suppose a long stretch of beach with many possible public and private entrances is such that it is impossible to control access and, as a result, gets very crowded on summer days. Which recognized characteristic of goods holds

If the percentage change in price is 10% and the percentage change in quantity supplied is 0% then the supply for the good is

The elasticity of demand for gasoline is likely to be

A decrease in supply will always

The demand for electricity is more elastic in the long run than in the short run because

A decrease in demand will decrease prices least when supply is

The total revenue/expenditure rule of elasticity suggests that when price and total revenue go

If the percentage change in quantity supplied is 0% and the percentage change in price is 10% then the supply for the good is

If the price of a good increases by one thousandth of 1% and the quantity demanded goes to zero, then at that price, the good is

For a linear and upward sloping supply curve and a linear downward sloping demand curve, when the consumer has to pay a positive price for the good, the value to society of the market is a

When there is an increase in the price of a good

If the price rises and the total amount consumers spend on the good remains unchanged, then demand must be

For a given increase in supply, the condition of demand that will result in no change in quantity is when demand is

If the percentage change in quantity supplied is 10% and the percentage change in price is 5% then the supply for the good is

Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that

For a linear and downward sloping demand curve, when the consumer has to pay a positive price for the good, the value to the consumer is a

A decrease in demand will decrease prices most when supply is

The cross price elasticity for Bud Light for a change in the price of Coor's Light is likely to be

If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 15% then the good is