Exam 19: Demand and Supply Elasticity

When the price of a textbook is $100, 60 copies are demanded; and when the price of that textbook goes up to $120, 30 copies are demanded. In the price range between $100 and $120, the demand for the textbook is

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

Suppose that the income elasticity of demand for peanut butter is 0.75. Which of the following is TRUE?

Suppose that when the price of root beer rises 1%, the quantity of hotdogs demanded falls 0.5%. This would mean that hotdogs and root beer are

-In the above figure, over the price range P5P6, demand is

-Refer to the above table. Demand is unit elastic between the prices of

Changes in technology over time will result in

Which of the following statements is FALSE?

Generally, expenses on a truck are a large part of a consumer's budget, so the demand for trucks is more likely to be

-Use the above figure. When the price increases from $2 to $10, the absolute price elasticity of demand is

For which of the following purchases would the absolute price elasticity of demand be greatest?

-According to the above table, what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?

-In the above figure, along the section of the demand curve between point a and point b, demand is

When the price of computer printers decreased from $100 to $85, the number of computer printers produced fell from 1,000 per week to 850 per week. Using this information, we know the supply of computer printers is

The price elasticity of demand is

When many substitutes exist for a good, demand will be

The government raises gasoline taxes as part of the price of gasoline and receives more tax revenues. However, after five years, the government discovers that revenues from the gasoline tax have declined. This situation would be most likely to occur if

If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are

The value of the absolute price elasticity of demand for good A is 4. The absolute price elasticity for good B is 1. Which good's quantity demanded is more responsive to a change in price?

Within the range of prices around the midpoint on a straight-line demand curve, demand is