microeconomics chp. 5

How heating gas tend to have_____demand because____

inelastic, people do not have time to adjust their consumption patterns

Suppose the demand for toxic waste disposal is very elastic. The government imposes and excise tax on waste disposal. The deadweight loss associated with the production of waste disposal will be

relatively large

If price increases by 100% and quantity demanded decreases by 50%, then the price elasticity of demand will equal

.5

If a product's price rises by 6% and its quantity demanded falls by 8%, then its elasticity is equal to

1.33 (8%/6%)

If the price of a product falls by 15% and the quantity supplied falls by 25%, we can say that the elasticity of supply is

Elastic

If demand is inelastic, the tax burden fall mainly on the_____and the deadweight loss is____

buyer, small

When moving down along a straight-line demand curve

elasticity of demand changes from elastic to inelastic

The price of gold increases by 200%. If the price elasticity of demand for gold is 0.4, what will happen in the market?

gold sales will decreases by 80% (.4x200)

If the cross elasticity of demand for good A with respect to good B is 2.3, then good A is a

substitue for good B

In which period can firms decide to leave the industry

the long run

In general, the flatter the supply curve

the more elastic the supply

If a store sells a good that has a unitary elastic demand (elasticity = 1), what would be the net result on their total revenue from and increase in price

there would be no change in the revenue

The primary determinate of the elasticity of supply is

time

If a firm sells a product that has a perfectly inelastic demand curve, then, if price doubles, it can be expected that

total revenue will double

A gas station owner in a large city learned in his microeconomics class that buyers are relatively unresponsive to changes in the price of gasoline. If, based on that assumption, he increases the price of gas at his station

total revenue will increase