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

Charles purchases 20 basketball tickets per year when his annual income is $50,000 and 25 basketball tickets when his annual income is $60,000.Charles's income elasticity of demand for basketball ticket is

For which of the following goods is the price elasticity of demand most inelastic?

If the demand for donuts is elastic,then a decrease in the price of donuts will

If the price elasticity of demand is 1.5,regardless of which two points on the demand curve are used to compute the elasticity,then demand is

The flatter the demand curve through a given point,the

Which of the following statements is correct?

When quantity moves proportionately the same amount as price,demand is

Suppose good X has a negative income elasticity of demand.This implies that good X is

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

Figure 5-9 -Refer to Figure 5-9.Using the midpoint method,the price elasticity of demand between point C and point D is about

Figure 5-7 -Refer to Figure 5-7.For prices above $5,demand is price

Figure 5-4 -Refer to Figure 5-4.If the price decreases in the region of the demand curve between points A and B,we can expect total revenue to

When the price of candy bars is $1.00,the quantity demanded is 500 per day.When the price falls to $0.80,the quantity demanded increases to 600.Given this information and using the midpoint method,we know that the demand for candy bars is

If the price elasticity of demand for aluminum foil is 1.45,then a 2.4% decrease in the price of aluminum foil will increase the quantity demanded of aluminum foil by

Figure 5-1 -Refer to Figure 5-1.Between point A and point B,the slope is equal to

Figure 5-4 -Refer to Figure 5-4.The section of the demand curve at point B represents the

If the price elasticity of demand for a good is 0.3,then a 20 percent decrease in price results in a

The demand for a good becomes more inelastic

Suppose the point (Q = 3,400,P = $20)is the midpoint on a certain downward-sloping,linear demand curve.Then

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