Exam 6: Elasticity

Use the following to answer questions : Figure: The Demand Curve -(Figure: The Demand Curve)Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $8 is approximately:

Demand for Wendy's hamburgers is more inelastic than the demand for all fast food.

Use the following to answer questions : Figure: The Market for Lattes -(Figure: The Market for Lattes)Use Figure: The Market for Lattes.What is the price elasticity of supply between the prices of $2 and $2.50 per cup,using the midpoint formula?

Use the following to answer questions : Figure: The Linear Demand Curve -(Figure: The Linear Demand Curve)Use Figure: The Linear Demand Curve.Suppose that this is the demand curve for scarves in your scarf shop.If you increase the price of your scarves from $7 to $8,your total revenue will _____,and you notice that your price elasticity of demand is _____.

Use the following to answer questions : Figure: The Demand Curve -(Figure: The Demand Curve)Use Figure: The Demand Curve.By the midpoint method,the price elasticity of demand between $6 and $7 is approximately:

Use the following to answer questions : Figure: The Demand for eBooks -(Figure: The Demand for e-Books)Use Figure: The Demand for e-Books.What is the price elasticity of demand (by the midpoint method)when the price decreases from $6 to $4?

Use the following to answer questions : Figure: The Linear Demand Curve -(Figure: The Linear Demand Curve II)Use Figure: Linear Demand Curve II.If price was initially set at $8 and then increased to $10,total revenue would:

You are the manager of a supermarket,and you know that the cross-price elasticity of peanut butter to jelly is exactly -2.0.Because of a bad grape harvest,grape jelly prices are expected to rise by 10% next year.To account for the change in demand,you should stock 10% more peanut butter.

Suppose that the price of gasoline increases 10% and the quantity of gasoline demanded in Calgary drops 5% per day.Demand for gasoline in Calgary is:

Consider the market for strawberries.Which statement MOST likely applies to the strawberry market?

Since for most people,eating in restaurants is a luxury and eating at home is a necessity,the price elasticity of demand for food eaten at home is lower than the price elasticity of demand for eating in restaurants.

If the cross-price elasticity of demand between rice and beans is -0.25,rice and beans are complements.

A major determinant of the price elasticity of demand is the availability of substitutes.

The mayor advocates raising the entrance fee at the city's pools to increase revenue for the city.The mayor is right only if the price effect dominates the quantity effect.

The price elasticity of demand is measured by _____ the percentage change in _____ the percentage change in _____.

Use the following to answer questions : Figure: The Demand for eBooks -(Figure: The Demand for e-Books)Use Figure: The Demand for e-Books.The demand schedule _____ when the price increases from $4 to $6 _____ when it increases from $6 to $8.

If the price elasticity of demand equals 0,the demand curve is:

When the absolute value of the percentage change in quantity demanded is less than the absolute value of the percentage change in price,demand is:

The price elasticity of demand is computed as the percentage change in the _____ divided by the percentage change in _____.

The price elasticity of demand measures the: