Exam 6: Elasticities

What type of demand curve is depicted by the graph below?

Buyers of a good will bear the larger part of the tax burden, and sellers will bear a smaller part of the tax burden, when the

When the Blue Ocean Surfboard Company lowered the price of surfboards by 20%, it sold 10% more surfboards. The price elasticity of demand for surfboards is:

Along a linear demand curve, price elasticity of demand is:

If the short run elasticity of demand for widgets is 1.1 and the long run elasticity of demand for widgets is 3.6, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run.

When a good is taxed, the tax burden

A price cut will decrease the total revenue a firm receives if the demand for its product is:

The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is:

If the price elasticity of demand was 4.0 (in absolute terms), a 10% off sale would lead to:

A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___.

Assume an industry initially in equilibrium has a price ceiling imposed at a price below the equilibrium price. Total revenue received by the producers from sales will:

Butch's Barber Shop knows that it faces an elasticity of demand equal to 3.0 over the relevant range of its demand curve. A 1% increase in its price will do what to the number of haircuts demanded from Butch's Barber Shop?

The elasticity of supply coefficient for lobster is estimated to be equal to 0.6. It is expected, therefore, that a 10% decrease in price would lead to:

​Exhibit 6-3 ​ -Refer to Exhibit 6-3. The graph that best illustrates a perfectly elastic demand curve is

If a price decrease leads to an increase in total revenue, demand must be:

The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:

Which of the following goods would be most likely to feature an income elasticity of zero?

Calculate the income elasticity of demand for DVDs, where a 10 percent increase in income results in a 20 percent increase in the demand for DVDs. Decide from your answer, whether DVDs are normal or inferior goods.

To determine whether or not a pair of goods are complements, economists are interested in the cross price elasticity of demand between the two goods.

Taxes affect​