Exam 5: Elasticities of Demand and Supply

-Steve sells hotdogs from a vending cart downtown.The table above shows his daily total revenues at four different prices.Between which two prices is the demand for hotdogs a.elastic? b.unit elastic? c.inelastic?

How does elasticity of supply differ for a product that can be stored,compared to a product that cannot be stored?

If,when the price falls,total revenue increases,demand is

Perfectly inelastic demand means that consumers

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

When the percentage change in the quantity supplied is less than the percentage change in price,the supply is

If a substitute good is easy to find,then demand for a good is

-Using the table above,what is the elasticity of demand between the prices of $6 and $4?

During the winter of 2011-2012,the price of fuel oil increased enormously but the quantity demanded decreased only a little.This response indicates that the demand for fuel oil was

Demand is elastic if

If the price of a six-pack of Pepsi falls from $4 to $3 and the quantity purchased increases 80 percent,then demand is

Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?

If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded,then demand is

At the midpoint of a linear,downward-sloping demand curve,the price elasticity of demand is

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

If the price of a good decreases from $9 to $6 and the quantity supplied decreases from 1,500 to 1,300,using the midpoint formula the elasticity of supply equals

The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent.The supply of lumber is

Which of the following is true? i.The easier it is to find substitutes for a good,the more price elastic the demand for the good is. ii.The demand for a good is more price elastic the smaller the proportion of income spent on it. iii.If demand is price elastic,lowering the price leads to a decrease in total revenue.

Which of the following is correct? i.All linear demand curves have a constant slope and a constant price elasticity of demand. ii.The price elasticity of demand changes while moving along a downward-sloping linear demand curve. iii.The magnitude of the slope of all linear demand curves is equal to the price elasticity of demand.

If demand is inelastic and the price falls,the total revenue