Exam 6: Elasticity: The Responsiveness of Demand and Supply

If the cross-price elasticity of demand between Breeze Detergent and Faber Detergent is a relatively large positive number,then it indicates that

When there few close substitutes available for a good,demand tends to be

If a firm wanted to know whether the demand for its product was elastic,unit-elastic,or inelastic,then the firm could

An article in the Wall Street Journal noted the following: Instead of relying on a full-coach,round-trip unrestricted fare of about $2,000 between Cleveland and Los Angeles ...Continental [Airlines] since June has offered a $716 unrestricted fare in that market ....Through October,the test resulted in about the same revenue that Continental thinks it would have collected with its higher fare. Source: Scott McCartney,"Airlines Try Cutting Business Fares,Find They Don't Lose Revenue," Wall Street Journal,November 22,2002. What is the absolute value of the price elasticity of demand on this airline route?

Suppose a 4 percent increase in price results in a 2 percent increase in the quantity supplied of a good.Calculate the price elasticity of supply and characterize the product.

Apple introduced the iPhone to the market in June 2007.Within two months,it had become clear that the price elasticity of demand for iPhones was

The demand for gasoline in the short run is

An increase in the demand for green tea raises the price of apples from $16 a pound to $20 a pound.As a result,quantity supplied increases by 30 percent.Using the midpoint formula,calculate the value of the price elasticity of supply?

The cross-price elasticity of demand between an unlimited texting option and an unlimited call minutes option offered from a cell phone provider would be