Chapter 6 Price Changes
Which of the following causes the man to be more elastic with respect to Price?
A higher ratio of price to income
if demand is elastic, then
An increase in price will reduce total revenue.
When the percentage change in quantity demanded is less than the percentage change. in price, ceteris paribus
Demand is inelastic
The longer the time period, the
More elastic the demand for the good
As a number of substitutes for a good increases, the
Price elasticity of demand should become larger
If demand is very inelastic,
The demand curve will be very steep.
If the price elasticity of demand for cigarettes is 0.4
The demand is inelastic
If the demand for a product is elastic, then
The percentage change in quantity demanded is greater than the percentage in price.
Which of the following products will have elastic demand?
Travel souvenirs
Which of the following is likely to have the most inelastic price elasticity of demand?
automobiles
Which of the following would most likely have a price elasticity coefficient less than one?
coffee
If the price elasticity of demand is equal to two, the good has demand
elastic
demand is more price-elastic
in the long run
Which of the following products will have more inelastic demand?
medicines
total revenue is
quantity times total price
If demand is perfectly elastic
the demand curve is horizontal
total revenue. is equal to
the income from sales
When demand is inelastic
the percentage change in price is greater than the percentage change in quantity demanded
The price elasticity of demand is equal to
the percentage change in quantity demanded divided by the percentage change in price
A demand curve that is perfectly inelastic is
vertical