Exam 5: Elasticity of Demand and Supply

When agricultural production increases, the total amount paid for agricultural products tends to

If the cross-price elasticity of demand is -3, then

If demand is unit elastic, a price reduction will

"More elastic" means

Goods with an income elasticity of demand greater than 1 are called

Substitutes are pairs of products with

Price elasticity of demand is calculated as

NARRBEGIN: Exhibit 5-8 Exhibit 5-8 -Which of the following is not true in the range of the total revenue curve labeled A in Exhibit 5-8?

For which of the following is demand most likely to be price inelastic?

NARRBEGIN: Exhibit 5-21 Exhibit 5-21 -Use the information in Exhibit 5-21 to calculate the value of income elasticity of demand for Good A.

The general term elasticity refers to a relationship between

A 10 percent increase in the price of root beer causes a 5 percent increase in the quantity demanded of orange soda. This means that

Substitutes are pairs of goods that have a positive cross-price elasticity of demand.

Any supply curve that is a straight line passing through the graph's origin is unit elastic.

NARRBEGIN: Exhibit 5-9 Exhibit 5-9 -It has been suggested that if NHL hockey teams would lower ticket prices, they could increase revenue from ticket sales. Which of the following assumptions forms the basis for this suggestion?

For which of the following medical goods or services is the income elasticity of demand likely to be largest?

The most important determinant of price elasticity of supply is

NARRBEGIN: Exhibit 5-26 Exhibit 5-25 -Refer to exhibit 5-25. Between points A and B, price elasticity of demand is:

If the income elasticity of demand for a service is 0.6, then a 5 percent increase in income will generate a __________ in quantity demanded

NARRBEGIN: Exhibit 5-6 Exhibit 5-6 -We can tell that demand is elastic as price falls between point a and point b in Exhibit 5-6 because