Elastic problems

When consumers have more time to adjust, demand becomes relatively more __.

Elastic

A price elasticity of supply of .50 means that if the price decreases by 1%, the quantity supplied will __ by __%

fall, .50

A price elasticity of demand of -.75 means that if the price decreases by 10%, the quantity demanded will __ by __%.

Increase, 7.50

A price elasticity of demand that is calculated as -.61 would be considered __.

Inelastic

The time period in which all inputs of production are variable and no input is fixed is the:

Long run

Simple formula for the price elasticity of supply is:

Make the number easier to work with when determining whether the demand is elastic, inelastic, or unit-elastic

Economists find elasticity useful because it:

Of the law of supply

__ elasticity of demand is a measure of how responsive the quantity demanded is to a change in price.

Price

The time periods associated with a set of supply curves include:

The short run The immediate period The long run