Exam 5: Elasticity and Its Applications: The Elasticity of Demand

If the price elasticity of demand for a good is 5,then a 10 percent increase in price results in a

If the demand for bananas is elastic,then an increase in the price of bananas will

If a change in the price of a good results in no change in total revenue,then

Suppose that when the price of ginger ale is $2 per bottle,firms can sell 4 million bottles.When the price of ginger ale is $3 per bottle,firms can sell 2 million bottles.Which of the following statements is true?

If the price elasticity of demand for a good is 2,then a 10 percent decrease in the quantity demanded must be the result of

If two goods are substitutes,their cross-price elasticity will be

Which of the following is likely to have the most price inelastic demand?

Using the midpoint method,the price elasticity of demand for a good is computed to be approximately 2.Which of the following events is consistent with a 0.1 percent increase in the price of the good?

A perfectly elastic demand implies that

When the price of a good is $5,the quantity demanded is 120 units per month;when the price is $7,the quantity demanded is 100 units per month.Using the midpoint method,the price elasticity of demand is about

The midpoint method for calculating elasticities is convenient in that it allows us to

Figure 5-4 -Refer to Figure 5-4.The section of the demand curve from B to C represents the

Figure 5-12 -Refer to Figure 5-12.Sellers' total revenue would increase if the price

Marcus says that he would smoke one pack of cigarettes each day regardless of the price.If he is telling the truth,Marcus's

For which pairs of goods is the cross-price elasticity most likely to be negative?

Figure 5-10 -Refer to Figure 5-10.Total revenue when the price is P₁ is represented by the area(s)

Figure 5-8 -Refer to Figure 5-8.When the price is $15,total revenue is

Last year,Max bought 6 pairs of athletic shoes when his income was $35,000.This year,his income is $42,000,and he purchased 8 pairs of athletic shoes.Holding other factors constant,it follows that Max

Which of the following expressions represents a cross-price elasticity of demand?

Figure 5-10 -Refer to Figure 5-10.If rectangle D is larger than rectangle A,then