Exam 5: Elasticities of Demand and Supply

Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent.Based on this information,we know that for Sergio,Blu-ray movies

For which of the following would the supply likely be most inelastic?

If the percentage change in quantity demanded is greater than the percentage change in price,can you determine if the demand is elastic,unit elastic,or inelastic? Explain your answer.

"The fewer the number of substitutes for a product,the more elastic the demand for that product." Is the previous statement true or false?

If the percentage change in the price of a good exceeds the percentage change in the quantity supplied,then the supply is

If a product is a normal good,then its income elasticity of demand is

What does a horizontal demand curve indicate about the price elasticity of demand?

Economists use elasticity to measure the responsiveness of quantity to a change in price rather than the slope of the demand curve because elasticity is

Along a linear (straight-line)downward-sloping demand curve,demand is unit elastic at

Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700.What does the price elasticity of supply equal?

-In the figure above,using the midpoint method,what is the price elasticity of demand when the price falls from $8 to $7?

The cross elasticity of demand for butter and margarine is likely to be

In the figure above,at the point where the price is $4 per cup the price elasticity of demand is

Suppose bad weather decreases the quantity of wheat by 12 percent.If the price elasticity of demand for wheat is 0.6,how would the crop failure affect the price of wheat? Would the crop decrease benefit or harm wheat farmers?

When the price of Ford pickup trucks rises from $18,000 to $19,000,the quantity of Chevy trucks demanded increases from 112,000 to 144,000.What does the cross elasticity of demand between Ford and Chevy trucks equal?

Goods are ________ when the income elasticity of demand is less than zero.

The supply of beach front property on St.Simon's Island is

If the income elasticity of demand for a Miami Dolphins season ticket is 2.34,then are Dolphins season tickets a normal or an inferior good?

-Using the table above,the elasticity of demand is equal to 1 at a price of

-Using the data in the table above,when the price of a skirt rises from $20 to $35,what is the price elasticity of demand? (Use the midpoint method. )