Exam 6: The Price Elasticities of Demand and Supply

If price were lowered from $22 to $21, quantity demanded rose from 100 to 103, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic, and find how much total revenue was when the price was $22 and $21.

The most important determinant of the elasticity of demand is ___________.

Which statement is false?

Use the following figure to answer the question : -When demand is perfectly inelastic the buyer pays _____ of a tax.

If price were increased from $38 to $39 and quantity demanded fell from 18 to 13, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue was when price was $38 and $39.

If the price of Snickers candy bars fall 10% and quantity demanded rises by 11%, demand is ________.

If demand is __________ and price is _________, total revenue will ________.

Use the following figure to answer the question : -If price falls from $100 to $99 and quantity demanded rises from 2 to 3, the demand is

In effect, a tax increase has the same effect as a ____.

Total revenue will fall if

If the price of a service tripled and people consumed exactly the same quantity, how much is the elasticity of demand for that service?

In the space provided in the graph above, draw a perfectly inelastic demand curve and state its elasticity.

Use the following Figure to answer the question : -Which statement is true about the demand curve in the graph above?

If you buy 10% more compact discs in response to a 20% increase in income, your income elasticity for compact discs is _____.

Between 1996 and 2002, the sale of kosher foods almost quadrupled. During this period its elasticity of demand

Use the following Figure to answer the question : -As a result of the tax, consumption of this good will decline by

Use the following figure to answer the question : -In the demand curve shown in the above graph we are closest to unit elasticity at point

If the elasticity of demand for good ALPHA is 2.0,

In which of the following time periods can sellers NOT respond to changes in price by increasing quantity supplied?

Cross elasticity is defined as the _______________.