Chat with AIExam 5: Elasticity: a Measure of Response
The income elasticity of demand for eggs has been estimated to be 0.57.If income grows by 5 percent in a period, how will that affect demand for eggs in that period, all other things unchanged?
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VerifiedB
If the percentage change in quantity demanded is greater than the percentage change in price, then demand is price elastic.
(33) VerifiedTrue
Discuss and explain what happens to total revenue when price rises and demand is price elastic, price inelastic, and unit price elastic.Do the same for a price decrease.
(38) 
Answered by Examlex AI CopilotWhen the price rises and demand is price elastic, total revenue will decrease. This is because the increase in price will cause a larger decrease in quantity demanded, leading to a more than proportionate decrease in total revenue.
On the other hand, when the price rises and demand is price inelastic, total revenue will increase. This is because the increase in price will cause a smaller decrease in quantity demanded, leading to a less than proportionate decrease in total revenue.
When the price rises and demand is unit price elastic, total revenue will remain constant. This is because the increase in price will result in a proportionate decrease in quantity demanded, leading to no change in total revenue.
Now, when the price decreases and demand is price elastic, total revenue will increase. This is because the decrease in price will cause a larger increase in quantity demanded, leading to a more than proportionate increase in total revenue.
When the price decreases and demand is price inelastic, total revenue will decrease. This is because the decrease in price will cause a smaller increase in quantity demanded, leading to a less than proportionate increase in total revenue.
Finally, when the price decreases and demand is unit price elastic, total revenue will remain constant. This is because the decrease in price will result in a proportionate increase in quantity demanded, leading to no change in total revenue.
If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,000 a year, then, for you, shoes are considered a(n):
(38) Use the following for questions 116-119.
Exhibit: The Demand for Macintosh Computers
-(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point V equals the:
-(Exhibit: Demand for Macintosh Computers) The seller's total revenue at point V equals the: (27) A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie.Hence, the absolute value of the price elasticity of demand is:
(33) If a demand curve has a constant slope, price elasticity will also be constant.
(33) Use the following to answer question(s): 
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $1.50 and $1.25?
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $1.50 and $1.25? (33) The cross price elasticity of demand for Coke with respect to the price of Pepsi has been estimated to be 0.61.If the price of Pepsi falls by 10 percent in a period, how will that affect the demand for Coke in that period, all other things unchanged?
(22) If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,000 a year, then your income elasticity of demand for shoes is:
(35) Use the following for questions 108-115.
Exhibit: The Demand for Bungalow Bob's Bagels
-(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue increases if the price ________ from ________.
-(Exhibit: The Demand for Bungalow Bob's Bagels) Total revenue increases if the price ________ from ________. (36) Use the following to answer question(s): Demand for Shirts
-(Exhibit: Demand for Shirts) The price elasticity of demand for the segment FG is:
-(Exhibit: Demand for Shirts) The price elasticity of demand for the segment FG is: (32) The price elasticity of supply for milk in the short run has been estimated to be 0.36, while the price elasticity of supply for milk in the long run is estimated to be 0.51.That means the supply of milk is:
(34) The cross price elasticity of demand for Pepsi with respect to the price of Coke has been estimated to be 0.80.If the price of Coke increases by 10 percent in a period, how will that affect the demand for Pepsi in that period, all other things unchanged?
(34) If total revenue goes down when price falls, the price elasticity of demand is said to be:
(36) If your income increases and your consumption of bagels increases, bagels are considered a(n):
(34) Use the following to answer question(s): Demand and Price Elasticity 2
-(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points B and A is:
-(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points B and A is: (37) Which of the following will lead to a decrease in total revenue?
(24) Along the upper half of a linear demand curve, the price elasticity of demand will be:
(19) 
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