Exam 6: Elasticity of Demand and Supply

The cross elasticity between two goods, X and Y, is positive. From this, we can conclude that goods X and Y are:

On a part of the demand curve where the price elasticity of demand is less than 1, a decrease in price:

Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:

Which of the statements below does not describe a demand curve that is unit elastic?

If the government wants to raise tax revenue and shift most of the tax burden to the sellers it would impose a tax on a good with:

A lower price elasticity of demand coefficient occurs when:

Narrbegin Exhibit 5.4 Supply and demand curves for cigarettes -As shown in Exhibit 5.4, the $1 per pack tax on cigarettes raises tax revenue per day totalling:

If the income elasticity for a particular good is 1.8, we would expect to see more of that good:

The most important determinant of price elasticity of demand is:

If demand price elasticity measures 2, this implies that consumers would:

If a 5 per cent decrease in the price of a good produces a 5 per cent increase in the quantity demanded, the price elasticity of demand is:

If a tripling of price triples the quantity of a good supplied, the price elasticity of supply for this good is:

For many people with diabetes, insulin would have an elasticity of demand of:

The number of music CDs purchased increased by 50 per cent when consumer income increased by 10 per cent. Assuming other factors are held constant, music CDs would be classified as:

The price elasticity of demand for a particular good is influenced by which of the following factors?

Petrol has inelastic price elasticity of demand in both the short and long run but chinaware has elastic price elasticity of demand in the both short and long run because:

The president of Tucker Motors says, 'Lowering the price won't sell a single additional Tucker car'. The president believes that the price elasticity of demand is:

The price elasticity of demand for a vertical demand curve is:

Narrbegin Exhibit 5.1 Demand curves -In Exhibit 5.1, between points a and c, the price elasticity of demand measures

If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which: