Exam 4: Elasticity

The cross-price elasticity of demand for peanut butter and jelly is likely:

The price elasticity of demand for business air travel is .80 and the price elasticity of demand for leisure air travel is 1.60. Therefore, the demand for leisure air travel

Assuming elasticity of demand is reported as an absolute value, a price elasticity of demand of 0.4 indicates an:

An increase in price:

When a good has many close substitutes available, it is likely to be:

A rare coin dealer is likely to have a _______________ price elasticity of supply than does a coffee shop due to ____________________.

The price elasticity of demand for eggs is 0.27. Thus, 0.27 is the:

The response in quantity demanded to a price increase in subway rides:

A price increase will cause an increase in total revenue when:

The demand for a subway ride is probably ___________________ than is the demand for a car because ___________________.

Cross-price elasticity refers to:

The demand for a movie ticket is probably _________________ than is the demand for a Broadway show ticket because ______________.

Gasoline and motel rooms are complements for many consumers. When the price of gasoline declines, consumers take longer vacations and rent more motel rooms. Therefore, the cross price elasticity between gasoline and motel rooms is

When price was 10, quantity demanded was 50. When price decreased to 8, quantity demanded increased to 60. Therefore, when price decreased, total revenue

The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.

If a one percent change in the price of oil causes a 0.02 percent change in the quantity demanded of oil, then 0.02 is the

Suppose when the price of pizza goes from $8 to $12 per pie, production increases from 2,500 pies to 4,000 pies per month. Using the mid-point method, the percentage change in price is:

Considering the concept of cross-price elasticity, if two goods are substitutes:

Price elasticity is a measure of how

Suppose when the price of mascara is $12, the quantity demanded is 450, and when the price is $8, the quantity demanded is 550. Using the mid-point method, the price elasticity of demand is: