Exam 19: Demand and Supply Elasticity

Which of the following is a determinant of the price elasticity of demand for a product? I. The existence of substitute goods II) The percentage of a consumer's total budget devoted to purchases of that commodity

Changes in technology over time will result in

Total revenues reach a maximum when

When numerous but imperfect substitutes exist for a good, the demand for the good will tend to be

"Unit elasticity of demand can be found everywhere along a straight-line demand curve with a slope of -1." Do you agree or disagree? Explain.

When the absolute percentage change in quantity demanded is just equal to the percentage change in price, demand is

When there are very few substitutes for a good, the demand for the good will tend to be

Which of the following is a determinant of the price elasticity of demand for an item?

When demand is elastic, a decrease in price will

"The income elasticity of a good is positive if a consumer increases the total spending on that good as a result of an increase in its market price." Do you agree or disagree? Why?

If the absolute price elasticity of demand for a product is less than 1, then

If the calculated price elasticity of demand between two points is -4, demand is

If total revenues rise when the market price increases, then we know that

When the consumer spends less than 3% of his income on a good, demand will be

Suppose two goods are perfect substitutes. The price elasticity of demand of one of the goods is

-Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?

The absolute price elasticity of demand for a product for which annual expenditures make up a very small share of a typical consumer's budget is probably

A demand relationship in which a given percentage change in price will result in a larger percentage change in quantity demanded is

Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?

-Refer to the above table. Suppose the price of X increases from $10 to $12. What is the cross price elasticity of demand between X and Y?