Exam 19: Demand and Supply Elasticity

Suppose the quantity demanded of ice cream cones increases from 400 to 425 cones a day when the price is reduced from $1.50 to $1.25. In this situation, the elasticity of demand, calculated using the average method, is

Which of the following is NOT a determinant of the price elasticity of demand?

If the cross price elasticity of demand between two goods is positive, then the two goods are

-Refer to the above table. For which prices is demand unit-elastic?

If your income rises by one percent and, as a result, you buy more steak, then steak is a(n)

Suppose that when the price of good A changes, the quantity of good B demanded remains the same. The cross price elasticity of demand is

Suppose that the absolute price elasticity for cookies equals 0.8. We could then say that the demand for cookies is

When demand is inelastic

If the market price of a product falls and as a result total revenue of firms falls, we can conclude that

-Refer to the above figure. Demand will be unit-elastic when quantity is between

Which of the following is NOT characteristic of a good with elastic demand?

-Use the above figure. Which graph depicts complementary goods?

When demand is perfectly inelastic, the demand curve is

If the absolute price elasticity of demand is 0.2, a 5 percent decrease in the price will cause

A perfectly horizontal demand curve has

If the price of good A increases from $15 to $20 per unit and quantity demanded falls from 150 to 100 units, then by using the method of average values, we can calculate the absolute price elasticity of demand to be

-Refer to the above table. Based on the information in the table, we can say that

-Refer to the above figure. Demand is

The quantity of raspberries sold at a local store increases from 100 pints to 1,500 pints when the price is reduced from $4.00 to $1.00. In this situation, the absolute price elasticity of demand for raspberries is approximately

Two items which have a negative cross price elasticity of demand are referred to as