chapter 4 econ

if the demand for economy class airline tickets is elastic with respect to price, then if the price of economy class airline tickets increases, then the total expenditure will

Decrease

changes in price and changes in total expenditure move in the same direction when the price elasticity of demand is

Less than one

price elasticity of demand

a measure of the responsiveness of the quantity demanded of that good to changes in its price

if the income elastiscity of demand for airplane tickets is positive, then airplane tickets are

a normal good

inelastic

if the absolute value is less than 1

unit elastic

if the absolute value of its price elasticity is equal to 1

price elastic

if the absolute value of its price elasticity is greater than 1inelas

if the supply of nail polish shifts to the left, then total expenditure on nail polish will

if the supply of nail polish shifts to the left and the price elasticity of demand is greater than one, then the percentage increase in price will be smaller than the percentage decrease in quantity demanded, leading total revenue to decreas=-0

if the demand for first class airline tickets is inelastic with respect to price, then if the price of first class airline tickets increase, then total expenditure will

increase

the price elasticity of demand ____ as you move upward along a straight line demand curve

increases

suppose that a local politician proposes that the price of lottery tickets will be cut in half in order to reduce the total amount that people spend on lottery tickets. This plan will

only be effective if the demand for lottery tickets is inelastic with respect to price

you notice that the price of your favorite candy bar has been relatively stable overtime. A possible explanation for this is that both supply and demand are

price elastic

perfectly inelastic

the price elasticity of supply is zero then supply is

if supply is perfectly inelastic with respect to price, then the price elasticity of supply is:

zero