ECON101 Exam 2
is constant, changes from one point to another
Along a linear demand curve, the slope __________ while the price elasticity of demand __________.
an increase, positive
An increase in the price of a substitute for iPads will lead to __________ in the quantity demanded of iPads so the cross-price elasticity of demand will be __________.
percentage changes
Economists avoid confusion over units in the computation of elasticity by using:
the longer the time elapses
If prices rise the quantity supplied will be greater:
increase, 8.0
If the price elasticity of supply is 0.4, then a 20% increase in price will __________ the quantity supplied by __________ %.
fall to zero
If the supply of Good B is perfectly elastic and price falls the quantity supplied will:
cap-and- trade
One idea often floated in the United States as a legislative response to global climate change is __________.
complements
Personal computers and computer display monitors are:
transaction costs
The costs associated with engaging in a process to solve a particular pollution problem are referred to as:
inelastic, low
The disappearance of the family farm can be partially attributed to the fact that the elasticity of demand for wheat is __________, while at the same time, the income elasticity for wheat is __________.
An inferior good
The income elasticity for peanut butter is -3. This defines peanut butter as what type of good?
zero
What is the cross-price elasticity of demand for two goods that are unrelated?