econ Final

If the price of elasticity of demand is 0.5, this means that a _____ increase in price causes ______ decrease in quantity demanded

30%;15%

the price of elasticity of demand for a higher education is about -1.4. A 5% increase in tuition would lead to:

A decrease in enrollment by 7%

suppose that the government sets a maximum price for milk at $1 a gallon and the equilibrium price of a gallon is $3. How much quantity traded will this maximum price lead to?

Below the equilibrium quantity

Which of the following products has the least elastic demand?

Coca Cola in 12 oz. cans

a binding quantity restriction (quota) leads to a price______ the equilibrium price

above

Assume the government sets a minimum price for a particular good below the equilibrium. How much quantity traded will this lead to?

below the equilibrium quantity

as illustrated above, if your city imposes a tax of $100 per apartment:

consumers pay $60 and the landlords pay $40 tax per apartment

suppose that you observe that as a auto manufacture increases its price its total revenue decreases. this could be due to:

demand being price elastic

If the price elasticity of demand is -1.3, demand is:

elastic

if a product has only a few substitutes, demand for the product is most likely to be:

inelastic

on a linear demand curve, demand is _______ at large quantities than it is at the middle of the demand curve.

less elastic

the price elasticity of demand reflects the responsiveness of:

quantity demanded to a change in price

Governments like to know the price elasticity of demand because it helps them determine how changes in sales tax rates will affect:

tax revenues

If the demand for jelly increases, and the price of grapes (used to make jelly) rises

the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly falls

The price of elasticity of demand is calculated by:

the percentage change in quantity demanded divided by the percentage change in price.

suppose that a new study is released stating that consumption of orange juice reduces the risk of cancer, and a major freeze destroys half the country's apple crop. What happens to the price and quantity of apple juice?

the quantity of apple juice might rise or fall, and the price of apple juice rises

the price elasticity of a supply is a measure of the responsiveness of:

the quantity supplied to the changes in price

The cross elasticity of demand measures

the relationship between the demand for one good and the price of another

for a taxed product and a fixed slope of supply curve, if a demand curve becomes more elastic

the share of a tax consumers take becomes greater