econ20a

if the demand curve is very elastic and the supply curve is very inelastic in a market, then the seller will bear a greater burden of a tax imposed on the market, even if the tax is imposed on the buyer

TRUE

using the midpoint method, the price elasticity of demand for a good is computed to be approximately 2. Which of the following 0.1 percent change increase the price of the good

The quantity of the good demanded decreases by .2 percent

for which of the following good is the income elasticity of demand likely highest? a)hamburgers b)boats c)doctors visits d)natural gas

b

the discovery of a new hybrid wheat. As a result, wheat farmers would realize an increase in TR

demand for wheat is elastic

binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price

false

regardless of whether a tax is levied on sellers or buyers, taxes encourage market activity

false

a binding minimum wage tends to

have the greatest impact in the market of teenage labor cause unemployment cause a labor surplus

if the demand for donuts is elastic, then a decrease in the price of donuts will

increase total revenue of donut sellers.

the minimum wage is an example of a

price floor

a perfectly inelastic dmeand implies that buyers

purchase the same amount as before when the price rises or falls..

if the quantity supplied responds only slightly to changes in price, then

supply is said to be inelastic

which of the following are true

the demand for grandfather clocks is more elastic than the demand for clocks in general b) the demand for cardboard is more elastic over a long period of time than over a short period of time c) the demand for flat-screen computer monitors is more elastic than the demand for monitors in general.

suppose demand is perfectly elastic, and the supply of the good in question decreases. as a result,

the equilibrium quantity decreases, and the equilibrium price is unchanged

elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the

the flatter the demand curve will be

Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon

true

if the price elasticity of demand is equal to 1, then the demand is unit elastic

true

the rationing mechanism that develop under binding price ceilings are usually inefficient

true

whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes

true

as the price elasticity of supply approaches infinity, very small changes in price leads to

very large changes in quantity supplied