Exam 19: Elasticity

If the price of good X falls and the demand for good X is inelastic, then the percentage __________ in quantity demanded is __________ the percentage fall in price, and total revenue __________.

Exhibit 19-2 ​ -Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S₁ to S₂. As a result,

If the price of good A decreases by 10 percent and the quantity demanded of good B increases by 10 percent, this is evidence that goods A and B are

As the price of a good falls from $5 to $3, the quantity supplied of the good falls from 550 units to 400 units. Price elasticity of supply is

The longer the period of time allowed for the producer of a good to adjust to a change in the price of the good, the ____________ the price elasticity of supply will be. This statement assumes that the quantity supplied __________ be altered with time.

If Casey bought 16 cotton t-shirts last year when her income was $40,000 and she buys 14 cotton t-shirts this year when her income is $45,000, then for Casey cotton t-shirts are

Cross elasticity of demand is the percentage change in the quantity __________ of a good divided by the percentage change in __________.

Price elasticity of demand is a measure of the responsiveness of quantity demanded to changes in

Exhibit 19-4 ​ -Refer to Exhibit 19-4. As a consequence of the depicted change in the supply of X, the demand curve for Y shifted from D₁ to D₂. Which of the following pairs of goods are most likely represented by X and Y?

Exhibit 19-5 ​ -Refer to Exhibit 19-5. Assume that the seller of X increases the price from $1.50 to $2.00, and this results in an increase in total revenue. Which of the graphs represents the demand curve for X?

Exhibit 19-5 ​ -Refer to Exhibit 19-5. For graph (1), what is the price elasticity of demand going between $2.00 and $1.50?

If the demand for a good is perfectly inelastic, then

If Jack bought 18 CDs last year when his income was $20,000 and he buys 19 CDs this year when his income is $25,000, then for Jack CDs are

If price elasticity of supply is greater than 1, it means that the percentage change in quantity supplied is

Suppose that the quantity demanded of good X rises by 8 percent when the price of good X falls by 2 percent. This information indicates that the price elasticity of demand equals

The fewer substitutes for a good,

When price = $16, quantity demanded = 200. When price = $14, quantity demanded = 225. When the firm lowered price from $16 to $14, it discovered that demand is __________ and total revenue __________ by ____________,

Suppose a producer decides that if the price of her product is $42, the quantity supplied will be 1,000 units, and if the price is $45, the quantity supplied will be 1,300. The price elasticity of supply for the good is approximately

Exhibit 19-3 -Refer to Exhibit 19-3. If price decreases from $5.50 to $4.50, total revenue along the demand curve

Consumers will pay the full tax that is placed on the sellers of a good if demand is __________ or supply is __________.