Exam 4: Elasticity

If consumers' buying decisions are not very sensitive to changes in price, then their demand is:

A horizontal demand curve indicates:

If the price of a DVD decreases by 50 percent, the quantity demanded increases by 75 percent. The price elasticity of demand is:

If supply and demand analysis is a measure of how, then elasticity is a measure of:

Which pair of goods is most likely to have a negative cross-price elasticity?

The amount that a firm receives from the sale of goods and services is:

Demand tends to be more elastic when:

Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand of 1.2 indicates an:

Suppose price increases from $9.00 to $11.00. Using the mid-point formula, the percentage change in price is:

Suppose when the price of pineapples goes from $5 to $3 per pineapple, production decreases from 3,500 pineapples to 2,000 pineapples per year. Using the mid-point method, the percentage change in price would be:

Different measurements of elasticity include:

If a good has an income elasticity of 0.18, then it is:

If a good has an income elasticity of 1.83, then it:

If the price of a good increases by 10 percent, its quantity demanded drops by 50 percent. The price elasticity of demand is:

Suppose price decreases from $27.00 to $13.00. Using the mid-point formula, the percentage change in price is:

If a good has unitary price elasticity of demand, then the absolute value of the percentage change in

A decrease in price:

If a good has an elastic demand, then:

A baker of chocolate chip cookies is likely to have a ______________ price elasticity of supply than does the seller of rare baseball cards due to ______________.

If the price of cereal increases by 10 percent and the amount of milk demanded decreases by 2 percent, then the cross-price elasticity of these goods is: