Exam 4: Elasticity

The demand for classical music is _______________ than is the demand for Beethoven's music because _______________.

When two goods are complements, their cross-price elasticity of demand is:

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged, we expect the number of lattes purchased at Starbucks to:

When price was 5, quantity demanded was 10. When price increased to 6, quantity demanded decreased to 9. Therefore, when price increased, total revenue

When consumers' incomes decline during a recession, they increase their consumption of instant coffee and reduce their consumption of other beverages. Therefore, instant coffee:

Mathematically, price elasticity of demand is the percentage change in the:

For many consumers, bacon and eggs are complements. Therefore, egg producers monitor the price of bacon because the cross elasticity between bacon and eggs is

The demand for a pack of gum is ______________ than is the demand for a steak because _______________.

Income elasticity will be positive for:

A good with a unit elastic demand has a:

A perfectly inelastic demand:

The demand for Farm fresh brand apple juice is likely to be:

Elasticities are used to measure responses to a change in:

If a small percentage change in price causes a larger percentage change in the quantity demanded, the good has:

The demand for spring break vacations is _________________ than is the demand for textbooks because ________________.

Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:

Total revenue is the amount:

The more time people have to adjust to a price change:

Whether a cross-price elasticity of demand is positive or negative indicates whether the:

Suppose when the price of novels goes from $15 to $20 per book, production increases from 760 million books to 840 million books per year. Using the mid-point method, the price elasticity of supply is: