Exam 33: Elasticity: Demand and Supply

Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____.

Which of the following goods is likely to have an income elasticity of demand that is less than zero?

When income elasticity of demand is a negative number, one can correctly conclude that:

For a given product, income elasticity of demand relates the percentage change in:

As the price is raised along a straight-line demand curve, the demand curve becomes more elastic.

When economists speak of the short run, they are referring to _____.

If the price elasticity of supply is 0.75, it would imply that a _____.

When the manager of a local movie theater raises the price of movie tickets from $7.50 to $8.50 total revenue falls.This means that:

Which of the following situations is represented by a nearly horizontal supply curve?

If a 15 percent reduction in the price of electricity per kilowatt hour has no impact on the total electricity consumption, we can infer that in the short run, the demand for electricity is _____.

The point elasticity is a measure of the sensitivity of consumers to a larger price change - a range from one price to another.

Jen considers smoking an inferior good.In other words, for Jen to quit smoking she would require a significant increase in income.

If a consumer is spending a small portion of his or her income on a good, then the demand for the good is likely to be inelastic.

Price elasticity of demand is more likely to be greater than one if:

What would be the consequences of a 10 percent decrease in the price of a good for which price elasticity of demand is 5?

The table below shows the quantities of automobiles, margarine, and coffee purchased by Ted at different levels of income. Table 19.2 Based on the information given in Table 19.2, margarine is:

A horizontal demand curve shows that demand for the good is _____.

Other things remaining unchanged, the longer the time period under consideration the greater will be the price elasticity of demand.

An inferior good or service is any good or service for which:

If the price elasticity of demand is equal to 4, a 1 percent increase in price will cause the quantity demanded to _____ by _____ percent.