Exam 5: Elasticities of Demand and Supply

Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800.Using the midpoint method,the elasticity of supply equals

-Steve sells hotdogs from a vending cart downtown.The table above shows his daily total revenues at four different prices.Between which two prices is the demand for hotdogs a.elastic? b.unit elastic? c.inelastic?

The income elasticity of demand is the percentage change in the ________ divided by the percentage change in ________.

-Using the data in the table above,the demand for skirts is

For a product with a constant or gently increasing opportunity cost of producing additional units,as more is produced,we expect that

If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent,then the elasticity of demand is

If a 5 percent decrease in income leads to a 15 percent decrease in the demand for a good,the income elasticity of demand equals

After long hair for men became popular,barbers found that their incomes fell.In an attempt to boost their incomes,many barbers raised the price of a haircut and yet their total revenue fell even more.What can explain this result?

-The demand curve shown in the figure above reflects demand that is

The elasticity of demand is used to

If the cross elasticity of demand between two goods is negative,are the goods substitutes or complements?

The figure above shows the demand curve for Starbucks latte. -In the figure above,the demand is inelastic in the range of prices between

Suppose the price elasticity of demand for bouquets of flowers is 4.0.You are charging $8 per bouquet.If you want to increase the quantity of bouquets you sell by 20 percent,what price should you charge?

The greater the amount of time that passes after a price change,the

Suppose the San Francisco 49ers lower ticket prices by 15 percent and as a result the quantity of tickets demanded increases by 10 percent.This set of results shows that San Francisco 49ers tickets have

When the price of going to a movie rises 5 percent,the quantity of DVDs demanded increases 10 percent.The cross elasticity of demand equals

Tennis balls and tennis rackets are complements.If a 3 percent change in the price of a tennis racket leads to a 9 change in the quantity of tennis balls demanded,the cross elasticity of demand equals

When hamburger is $3 per pound,Ms.Rush buys 6 pounds.When hamburger is $2 per pound,Ms.Rush buys 10 pounds.Describe Ms.Rush's demand between these two prices.

If the percentage change in price is 10 percent and the demand is elastic,then the percentage change in the quantity demanded

If the supply curve is ________,the elasticity of supply is ________.