Exam 19: Demand and Supply Elasticity

-Refer to the above figure. Demand is

Gold is sold in world markets, usually priced in terms of troy ounces. In the market for gold, the price elasticity of demand for gold would be expressed as

The cross price elasticity between A and B is 1.2. We can conclude that

Graphically, what is the main difference between the measure of income elasticity of demand as opposed to the measure of price elasticity of demand?

Jill earns an income of $2,000 a week and goes out to dinner 4 times a week. If her income increased to $2,100 she would go out to dinner 5 times a week. Jill's income elasticity of demand is

A perfectly elastic demand curve exhibits

The price elasticity of demand shows

-In the above figure, along which range would total revenue rise by lowering prices?

An elastic response in the quantity of a good demanded would be caused by

If the government places a $0.50 tax on an item for which demand is perfectly elastic

The absolute price elasticity of demand for good A is 1.2 when price is measured in dollars. If price were measured in cents, the price elasticity elasticity of demand would equal

For most goods and services the income elasticity of demand is

-Refer to the above table. Demand is least price elastic at a price of

The shorter the time period that suppliers have to adjust to price changes, the

If the quantity demanded of a product is the same for each possible price, demand is

Suppose 1000 units of a good are sold at $10 a unit. If its price increases to $20 and total revenue increases to $20,000 and increases by $1000 for every dollar increase in price after that, we know that

The price elasticity of supply is higher when

-Refer to the above table. Suppose the price of A increases from $10 to $12. What is the cross price elasticity of demand between A and B?

Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?

For an addictive drug such as heroin, if the price of heroin increases, then