Exam 5: Elasticities of Demand and Supply

If the percentage change in quantity demanded is greater than the percentage change in price,can you determine if the demand is elastic,unit elastic,or inelastic? Explain your answer.

The demand for a necessity generally is

When supply is perfectly inelastic,the supply curve is

We calculate the price elasticity of demand as the

As you move up along a straight-line demand curve,

One reason why the price elasticity of supply for DVD players is greater than one is that

When the percentage change in the quantity supplied is less than the percentage change in price,the supply is

If you spend a large portion of your income on a good,

The income elasticity of demand is a measure of

If a 5 percent increase in income brings about a 10 percent decrease in the demand for a good,then the

If a small percentage change in the price brings a very large percentage change in the quantity supplied,then the supply is almost perfectly ________ and the supply curve is almost ________.

The demand for necessities generally is ________ the demand for luxury goods.

When the percentage change in the quantity supplied equals the percentage change in price,the supply is

When income increases from $20,000 to $30,000 the number of home delivered pizzas per year increases from 22 to 40.The income elasticity of demand for home delivered pizza equals

If the percentage change in the quantity demanded is not zero but is less than the percentage change in the price,demand is

Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative.

One reason why the demand for gasoline is inelastic is because

-In the figure above,at which point (a,b,or c)along the linear demand curve illustrated would demand be a.most elastic? b.most inelastic?

A product's price elasticity of demand is likely to be greater

If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded,then demand is