Exam 5: Price Elasticity of Demand and Supply

Exhibit 5-9 Supply and Demand Curves for Good X ​ As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:

As one moves down a straight-line, down-sloping demand curve, price elasticity will:

Since it is always a negative number, economists use the convention of taking the absolute value of:

As the economy recovers from a recession, we should expect that demand for:

Exhibit 5-7 Demand curve for concert tickets ​ In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:

If a consumer's purchases of a product increase as income increases, this good is classified as a(n):

Exhibit 5-9 Supply and Demand Curves for Good X ​ As shown in Exhibit 5-9, the $200 per unit tax on Good X raises tax revenue per time period totaling:

Price elasticity of demand refers to the ratio of the:

Exhibit 5-8 Supply and demand curves for good X ​ In Exhibit 5-8, the price elasticity of supply for good X between points Y and E is:

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?

An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when the:

In the very short-run period,

Which of the following describes a situation in which demand must be elastic?

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:

If a straight-line demand curve slopes down, price elasticity will:

The longer the time period under study,

A study of consumers in an area found that as family income increased from $25,000 per year to $35, 000 per year, other factors held constant, the number of houses purchased increased from 7,000 per year to 11,000 per year. This finding indicates an income elasticity of demand coefficient for housing over this family income range of:

If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is:

If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is: