chapter five econ

a perfectly elastic demand implies that

any rise in price above that represented by the demand curve will result in a quantity demanded of zero.

how does a total right after you change as one moves down a linear demand curve

at first increases then decreases

on a downward-sloping linear demand curve in total revenue would be at Max

at the midpoint of the demand curve

refer to the graph shows the total revenue at Point 1 is represented by areas

b + d

a perfectly inelastic demand implies that

buyers purchase the same amount when the price Rises or Falls

in the long run the quantity supplied of most goods

can respond substantially to a change in price

if the cross price elasticity of demand is negative then the two good would be

complments

if the producers objective is to increase total revenue should

decrease the price charged to customers with the price elastic demand and increase the price charged to customers the price inelastic demand

are produced jewelry boxes at the demand for Julie practices the last dick in you want to increase your total revenue you should

decrease the price of your jewelry boxes

because the man for Wheat Timbs to be inelastic the development of new more productive hybrid wheat with him too

decrease the total revenue of wheat farmers

which of the following would you expect to have the highest income elasticity of demand

diamonds

in the garage trying to bug as price Falls from PA to PB which demand curve is most

do1

a person who loves to be on the sea in a boat will tend to have what type of demand for boats

inelastic

if a good is a necessity demand for the good would tend to be

inelastic

the supply of seats

is perfectly inelastic

Supply tends to be

more price elastic in the long run.

last year Joan bought 50 lb of hamburger when the household income was 40000 this year the house couldn't come was only $30, 60 Lbs hamburger all else constant Jones income elasticity of demand for the hamburger is

negative Sir John considers hamburger to be in inferior good

assume that 4 percent increase in income results in 2% decrease in the quantity demand the income elasticity of demand for the good is

negative in there for the good of an inferior good

good x is

normal good

if an increase in the price of a good results in an increase in total revenue for the firm then

nothing can be said about price elasticity of supply for the information given

Suppose there a 6% increase in the price of good acts and resulting 6% decrease in the quantity of excess demand price elasticity of demand X is

one

generally a firm would be able to respond most to change in price

one year

chocolate chip ice cream will tend to have a very elastic demand because

other flavors of ice cream almost perfect substitutes

cross price elasticity of demand is calculated as

percentage change in quantity demanded of one good divided by percentage change in price of a different good.

assume that 4% increase in income results of 2% increase in the quantity demanded of a good income elasticity of demand and the

positive and therefore the good is normal

demand is unit elastic if

price elasticity of demand is exactly 1

go to set Lorraine the price from 8 to $6 per ticket decreases Gravity by 4000 or 6 to 8 price range demand for baseball tickets must be

price inelstic

demand is said to be inelastic is the

qualities to man changes proportionately less than the price

cross price electricity of demand measures

quality of the band of one good changes in the price of another good

demand is said to be unit elastic is

quantity demanded changes by the same percentage as price

and the graph shown the point on the demand curve labeled B represents

the unit elastic section of demand curve

get smart University is contemplating increasing tuition to enhance GSU feels that it would enhance revenue

they are assuming that the demand for University is inelastic

the main determinant of the price elasticity of supply

time

at the midpoint of a downward-sloping linear demand curve electricity would be

unit elastic

knowing the demand for Wii is in lastic if all Farmers volunteering plowed under 10% of their wheat crop

wheat Farmers would increase the revenue

suppose a good ex has negative income elasticity of demand the supplies at the good

an inferior good

the concept of elasticity is used to

analyze supply and demand with greater precision

suppose the price elasticity of demand for basketballs is 1. 2 at 15% price will result in

and 8% decrease in the quantity of basketballs the band

if the management of baseball parks charges 8 per ticket

Derby 2000 empty seats

using the midpoint method was income elasticity of The Good y

-1.33

suppose the price of product taxes reduced from 1. 45 to 1. 25 as a result of quantity of excess demand increased from 2000 to 2200 using the midpoint method the price elasticity of demand for x and a given price range

.64

on the graph shown the electricity of demand from point B to quit see using the midpoint method would be

0. 75

what would be the elasticity of supply.

1.86

on the graph shown the electricity of demand from point A to point B using the midpoint method would be

2. 5

the price elasticity of demand for a good is 4. 0 then a 10% increase in price would result in

40% decrease in the quantity demand

Alice says that she would buy one banana split day regardless of the price if she is telling the truth

Alice's demand for the Banana Split is perfectly inelastic

in the grass as Christ Falls from PA to PB which demand curve is least elastic

D3

in any Market total revenue is

Price multiplied by quantity

which curve is most likely the long run

S3

a vertical supply curve signifies that

a change in price will have no effect on the quantity supplied

when the demand is inelastic a decrease in price will cause

a decrease in total revenue

in general, elasticity is

a measure of how much buyers and sellers respond to changes in market conditions

total revenue at point 2 would he repersented by areas

a+b

the demand of a good tends to be more elastic

all of the above are correct

but demand is elastic in the certain price range

an increase in price will decrease total revenue because a decrease in quantity demanded is greater than the increase in price

good y is

an inferior good

if an increase in income results in a decrease in the quantity demand for a good the good is

an inferior good

holding all else constant if pencil manufacturer increases production by 20% in the market price of pencils increase from . 50 to . 60 then the price elasticity of supply is in the midpoint method must be

elastic

if I go to the lecture e demand for the good would be

elastic

if a person has very little concerned for his slash her health demand for Health Care would tend to be

elastic

in the graph showing the section of the demand curve labeled a represents

elastic section of the of the demand curve

demand is elastic if

elasticity is greater than 1

if the demand curve is linear and downward-sloping which of the following would not be correct

electricities in the slope would both remain constant along the Curve

demand is inelastic if

electricity is less than 1

holding all other forces constant when the price of gasoline Rises the number of gallons of gasoline demanded Falls substantially over 10 year. Because

fire stick to be much more sensitive to a change in price and give him more time to react

like to see if demand is closely related to the slope of demand curve the more responsive buyers are to change in price the the demand curve

flattered

the main reason for using the midpoint method

gives the same answer regardless of direction of change

which of the following was not a reason why the government drug interdiction in Chris's drug-related crime

government drug programs are more lient with drugs offenders than in the 1980s

a perfect elastic demand curve will be

horizontal

Economist use the concept of price elasticity of demand to measure

how much buyers respond to change in price of a good

the price of the price elasticity of supply measures

how much declining supplied respond to change in the price of the good

the price of elasticity of demand measures

how responsive buyers are to change in price.

income elasticity of demand measures

how the quantity demanded changes as consumer income changes

let's ask every Avenue Hubbard we tend to increase the supply of labor under conditions would wheat Farmers realize an increase in revenue

if the demand for wheat is elastic

Diana said to be inelastic

if the quantity demand changes only slightly when the price of a good changes

demand is said to be elastic

if the quantity demanded responds substantially to changes in the price of the good

the demand for caviar tends to be

income elastic because buyers Julie full they cannot do without

the local pizza restaurant makes such great breadsticks that consumers do not respond much to a change in price if the owner is only interested interested in increasing Revenue he should

raise the price of the breadsticks

which supply curve is prefectly elstic

s1

a seller's responed substantially to change in price than

sellers are considered to be relatively price sensitive

last year Shelly 410 DVD movies when her income was 40000 this year income is 50000 / 20 20 DVD movies all else constant it's obvious that

she considered DVD movies to be a normal good

food and clothing tend to have

small income elasticities because consumers, regardless of their incomes, choose to buy relatively constant quantities of these goods.

if the cross price elasticity of demand is 1. 25 than the two goods would be

substitutes

at the quantity supplied response light only slightly to change a price then

supplies said to be inelastic

when a supply curve is relatively flat

supply is relatively elastic

if sellers do not respond at all to change in price

supply must be perfectly inelastic

if the elasticity of a supply of a product is greater than 1 then

supply us elastic

which of the following was not a reason why OPEC failed to keep the price of oil High

the agreements OPEC OPEC member sign allowed each country to produce as much oil as each wanted

holding all other forces constant of raising the price of a good results and must hold of Revenue

the demand for a good must be elastic

suppose that 50 candy bars are demanded at a particular price using the midpoint method of the price of Katy Perry's Rise by 4% the number of candy bars to be and it falls to 46 candy bars this means that

the demand for candy bars in the price range is elastic

suppose the government increases the tax on gasoline in order to raise revenue since raising the gasoline tax increase the price of gasoline in the government must be assuming

the demand for gasoline is price inelastic

if a change in the price of a good results in no change in the total revenue

the demand for the good must be unit elastic

if there are very few if any good substitutes for a then

the demand of good a would tend to be price inelastic

and the graph showing the section of demand curve labeled C represent

the inelastic section of the demand curve

demand for a good would tend to be more elastic

the longer the period of time considered

Economist compute the price elasticity of demand as

the percentage change in quantity demand divided by the percentage change in price