Exam 6: The Price Elasticities of Demand and Supply

In the short run, the demand for gasoline today is

In general, the fewer the substitutes available for a good

Use the following Figure to answer the question : -About how much of the tax is paid by the sellers?

If elasticity of demand is 5 and price is raised from $10 to $11, by what percentage will quantity demanded fall?

A.Draw another line on the graph representing a tax increase of $1. B.How much is the new equilibrium price and quantity? C.How much of the tax is borne by the buyers and how much is borne by the sellers?

If more substitutes become available demand tends to become ____ elastic, and over time demand tends to become ____ elastic.

If you'd "walk a mile for a Camel cigarette," your elasticity of demand for Camels is __________.

Use the following Figure to answer the question : -About how much of the tax is paid by the sellers?

Use the following Figure to answer the question : -How much revenue will the government raise each week from the tax?

Use the following figure to answer the question : -If demand is inelastic and price is lowered, total revenue will

An elasticity of 2 would be considered

If consumers are sensitive to price changes for a particular good, their demand for the good is said to be _______.

A sharp increase in the price of gasoline

A firm that changes its price and sees no change in the total revenues it receives is facing demand that is

As a result of the tax, consumption of this good will decline by

Use the following figure to answer the question : -A shift in the above graph from S1 to S2 may represent

If the price of medical services goes up 10% and quantity demanded falls by 3%, demand is _______.

-How much revenue will the government raise from the tax?

Use the following figure to answer the question : -Suppose a tax were imposed on motel rooms in the San Antonio area. If demand were slightly elastic and supply were very inelastic, the tax would be borne

A tax increase is usually borne