chapter five econ
a perfectly elastic demand implies that
any rise in price above that represented by the demand curve will result in a quantity demanded of zero.
how does a total right after you change as one moves down a linear demand curve
at first increases then decreases
on a downward-sloping linear demand curve in total revenue would be at Max
at the midpoint of the demand curve
refer to the graph shows the total revenue at Point 1 is represented by areas
b + d
a perfectly inelastic demand implies that
buyers purchase the same amount when the price Rises or Falls
in the long run the quantity supplied of most goods
can respond substantially to a change in price
if the cross price elasticity of demand is negative then the two good would be
complments
if the producers objective is to increase total revenue should
decrease the price charged to customers with the price elastic demand and increase the price charged to customers the price inelastic demand
are produced jewelry boxes at the demand for Julie practices the last dick in you want to increase your total revenue you should
decrease the price of your jewelry boxes
because the man for Wheat Timbs to be inelastic the development of new more productive hybrid wheat with him too
decrease the total revenue of wheat farmers
which of the following would you expect to have the highest income elasticity of demand
diamonds
in the garage trying to bug as price Falls from PA to PB which demand curve is most
do1
a person who loves to be on the sea in a boat will tend to have what type of demand for boats
inelastic
if a good is a necessity demand for the good would tend to be
inelastic
the supply of seats
is perfectly inelastic
Supply tends to be
more price elastic in the long run.
last year Joan bought 50 lb of hamburger when the household income was 40000 this year the house couldn't come was only $30, 60 Lbs hamburger all else constant Jones income elasticity of demand for the hamburger is
negative Sir John considers hamburger to be in inferior good
assume that 4 percent increase in income results in 2% decrease in the quantity demand the income elasticity of demand for the good is
negative in there for the good of an inferior good
good x is
normal good
if an increase in the price of a good results in an increase in total revenue for the firm then
nothing can be said about price elasticity of supply for the information given
Suppose there a 6% increase in the price of good acts and resulting 6% decrease in the quantity of excess demand price elasticity of demand X is
one
generally a firm would be able to respond most to change in price
one year
chocolate chip ice cream will tend to have a very elastic demand because
other flavors of ice cream almost perfect substitutes
cross price elasticity of demand is calculated as
percentage change in quantity demanded of one good divided by percentage change in price of a different good.
assume that 4% increase in income results of 2% increase in the quantity demanded of a good income elasticity of demand and the
positive and therefore the good is normal
demand is unit elastic if
price elasticity of demand is exactly 1
go to set Lorraine the price from 8 to $6 per ticket decreases Gravity by 4000 or 6 to 8 price range demand for baseball tickets must be
price inelstic
demand is said to be inelastic is the
qualities to man changes proportionately less than the price
cross price electricity of demand measures
quality of the band of one good changes in the price of another good
demand is said to be unit elastic is
quantity demanded changes by the same percentage as price
and the graph shown the point on the demand curve labeled B represents
the unit elastic section of demand curve
get smart University is contemplating increasing tuition to enhance GSU feels that it would enhance revenue
they are assuming that the demand for University is inelastic
the main determinant of the price elasticity of supply
time
at the midpoint of a downward-sloping linear demand curve electricity would be
unit elastic
knowing the demand for Wii is in lastic if all Farmers volunteering plowed under 10% of their wheat crop
wheat Farmers would increase the revenue
suppose a good ex has negative income elasticity of demand the supplies at the good
an inferior good
the concept of elasticity is used to
analyze supply and demand with greater precision
suppose the price elasticity of demand for basketballs is 1. 2 at 15% price will result in
and 8% decrease in the quantity of basketballs the band
if the management of baseball parks charges 8 per ticket
Derby 2000 empty seats
using the midpoint method was income elasticity of The Good y
-1.33
suppose the price of product taxes reduced from 1. 45 to 1. 25 as a result of quantity of excess demand increased from 2000 to 2200 using the midpoint method the price elasticity of demand for x and a given price range
.64
on the graph shown the electricity of demand from point B to quit see using the midpoint method would be
0. 75
what would be the elasticity of supply.
1.86
on the graph shown the electricity of demand from point A to point B using the midpoint method would be
2. 5
the price elasticity of demand for a good is 4. 0 then a 10% increase in price would result in
40% decrease in the quantity demand
Alice says that she would buy one banana split day regardless of the price if she is telling the truth
Alice's demand for the Banana Split is perfectly inelastic
in the grass as Christ Falls from PA to PB which demand curve is least elastic
D3
in any Market total revenue is
Price multiplied by quantity
which curve is most likely the long run
S3
a vertical supply curve signifies that
a change in price will have no effect on the quantity supplied
when the demand is inelastic a decrease in price will cause
a decrease in total revenue
in general, elasticity is
a measure of how much buyers and sellers respond to changes in market conditions
total revenue at point 2 would he repersented by areas
a+b
the demand of a good tends to be more elastic
all of the above are correct
but demand is elastic in the certain price range
an increase in price will decrease total revenue because a decrease in quantity demanded is greater than the increase in price
good y is
an inferior good
if an increase in income results in a decrease in the quantity demand for a good the good is
an inferior good
holding all else constant if pencil manufacturer increases production by 20% in the market price of pencils increase from . 50 to . 60 then the price elasticity of supply is in the midpoint method must be
elastic
if I go to the lecture e demand for the good would be
elastic
if a person has very little concerned for his slash her health demand for Health Care would tend to be
elastic
in the graph showing the section of the demand curve labeled a represents
elastic section of the of the demand curve
demand is elastic if
elasticity is greater than 1
if the demand curve is linear and downward-sloping which of the following would not be correct
electricities in the slope would both remain constant along the Curve
demand is inelastic if
electricity is less than 1
holding all other forces constant when the price of gasoline Rises the number of gallons of gasoline demanded Falls substantially over 10 year. Because
fire stick to be much more sensitive to a change in price and give him more time to react
like to see if demand is closely related to the slope of demand curve the more responsive buyers are to change in price the the demand curve
flattered
the main reason for using the midpoint method
gives the same answer regardless of direction of change
which of the following was not a reason why the government drug interdiction in Chris's drug-related crime
government drug programs are more lient with drugs offenders than in the 1980s
a perfect elastic demand curve will be
horizontal
Economist use the concept of price elasticity of demand to measure
how much buyers respond to change in price of a good
the price of the price elasticity of supply measures
how much declining supplied respond to change in the price of the good
the price of elasticity of demand measures
how responsive buyers are to change in price.
income elasticity of demand measures
how the quantity demanded changes as consumer income changes
let's ask every Avenue Hubbard we tend to increase the supply of labor under conditions would wheat Farmers realize an increase in revenue
if the demand for wheat is elastic
Diana said to be inelastic
if the quantity demand changes only slightly when the price of a good changes
demand is said to be elastic
if the quantity demanded responds substantially to changes in the price of the good
the demand for caviar tends to be
income elastic because buyers Julie full they cannot do without
the local pizza restaurant makes such great breadsticks that consumers do not respond much to a change in price if the owner is only interested interested in increasing Revenue he should
raise the price of the breadsticks
which supply curve is prefectly elstic
s1
a seller's responed substantially to change in price than
sellers are considered to be relatively price sensitive
last year Shelly 410 DVD movies when her income was 40000 this year income is 50000 / 20 20 DVD movies all else constant it's obvious that
she considered DVD movies to be a normal good
food and clothing tend to have
small income elasticities because consumers, regardless of their incomes, choose to buy relatively constant quantities of these goods.
if the cross price elasticity of demand is 1. 25 than the two goods would be
substitutes
at the quantity supplied response light only slightly to change a price then
supplies said to be inelastic
when a supply curve is relatively flat
supply is relatively elastic
if sellers do not respond at all to change in price
supply must be perfectly inelastic
if the elasticity of a supply of a product is greater than 1 then
supply us elastic
which of the following was not a reason why OPEC failed to keep the price of oil High
the agreements OPEC OPEC member sign allowed each country to produce as much oil as each wanted
holding all other forces constant of raising the price of a good results and must hold of Revenue
the demand for a good must be elastic
suppose that 50 candy bars are demanded at a particular price using the midpoint method of the price of Katy Perry's Rise by 4% the number of candy bars to be and it falls to 46 candy bars this means that
the demand for candy bars in the price range is elastic
suppose the government increases the tax on gasoline in order to raise revenue since raising the gasoline tax increase the price of gasoline in the government must be assuming
the demand for gasoline is price inelastic
if a change in the price of a good results in no change in the total revenue
the demand for the good must be unit elastic
if there are very few if any good substitutes for a then
the demand of good a would tend to be price inelastic
and the graph showing the section of demand curve labeled C represent
the inelastic section of the demand curve
demand for a good would tend to be more elastic
the longer the period of time considered
Economist compute the price elasticity of demand as
the percentage change in quantity demand divided by the percentage change in price
