Exam 19: Demand and Supply Elasticity

The value of the absolute price elasticity of demand for good A is 3. The absolute price elasticity for good B is 2. Which good's quantity demanded is less responsive to a change in price?

If the price of wireless phone service decreases and the demand for wired phone services decreases, then wired and wireless phone services are

Why is the price elasticity of supply greater if there is more time for adjustment to an increase in the price of an item?

Suppose that the value of the long-run absolute elasticity of demand for a good is one. Then, we know the short-run absolute price elasticity of demand will be

Why is time such an important determinant in the elasticity of supply? Is time also important in determining price elasticity of demand? Explain.

If the absolute price elasticity of demand for a product is equal to 1, then

Suppose that the cross price elasticity of demand between good X and good Y is -1.55. This indicates that the two goods are

Given a price elasticity of demand of -0.8, a decrease in price will

When Tim earned $65,000 he purchased 10 novels a year. His income has just increased to $68,000 and he plans to purchase 15 novels this year. Tim's income elasticity of demand for novels equals

-In the above figure, through which range would the demand for this good be most inelastic?

If the absolute price elasticity of demand for a product is greater than 1, then

The slope of the perfectly inelastic demand curve is ________, the slope of the perfectly elastic demand curve is ________.

Income elasticity of demand reflects

If the price of one good increases, and as a result the demand for another good increases, the goods are

-In the above table, the cross price elasticity of demand (using averages) for C with good A, when PA increases from $12 to $15, is approximately equal to

A perfectly elastic supply curve is

If the price of a cola increased by 12% and consumers responded by purchasing 24% less cola, the absolute value of price elasticity of demand for cola would be

OLED television prices rise by 10 percent, and in response the quantity of those OLED televisions supplied increases by 5 percent. The supply elasticity for OLED television sets in that price range is

An elastic demand indicates that

A 10 percent increase in the price of portable power banks leads to a 5 percent decrease in the quantity demanded of portable power banks. The absolute price elasticity of demand is