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