Exam 4: Elasticity

The list below refers to the price elasticity of demand. 1)perfectly inelastic 2)perfectly elastic 3)unitary elasticity 4)elastic 5)inelastic -Refer to the information above to answer this question.What is a demand when a firm can sell either more or less of a product at a constant price?

What do products such as household electricity,tobacco and toothpicks have in common?

A major determinant of demand elasticity is the number of complementary products available.

Which of the following circumstances will raise the total revenue of oat farmers?

The world's price of oil increased dramatically in 1973.Which of the following statements was most valid in 2012?

-If the price of Moonlight massage oil decreases from $3 to $2.50 and,as a result,total revenue increases from $6,000 to $7,500,what is the elasticity of demand?

-If the government puts a $2 excise tax on a product and as a result,price rises by $0.75,which of the following statements is correct?

Suppose that the price of a product decreased from $6.50 to $5.50,and the quantity demanded increased from 55 to 65.What is the value of the price elasticity of demand?

The list below refers to the price elasticity of demand. 1)perfectly inelastic 2)perfectly elastic 3)unitary elasticity 4)elastic 5)inelastic -Refer to the information above to answer this question.What is a demand curve that is parallel to the vertical axis?

The price elasticity of demand for keyboards is 2.5.If the percentage change in quantity demanded is 50% and the average price is $10,what is the change in price?

Suppose that the value of the price of a product decreased from $2.10 to $1.90,and the quantity supplied decreased from 24 to 16.What is the value of supply elasticity?

Below are some data on price,income and demand for five different time periods. -Refer to the information above to answer this question.What is the cross price elasticity of demand of product X for Y between years 4 and 5?

Suppose that the price of Product A increased from $9 to $11 and the quantity demanded of Product B increased from 192 to 208.What can be said about the products?

Why do some people argue that attempts to reduce much of the crime in our society by governments "getting tough" on crime will not be successful?

Suppose that the value of the supply elasticity of a product is 2 and its price decreases by 14%.What will happen to the quantity supplied?

The Grateful Dead (before they disbanded)sold out concert after concert and typically provided a good living for scalpers (people who buy up lots of tickets and resell them at a premium).Explain (using a supply and demand diagram)how the band's ticket pricing policy set an effective ceiling on the price of concert tickets.(Extra Credit: If the Grateful Dead knew their price of concert tickets was below equilibrium,why didn't they raise it?)

The list below refers to the price elasticity of demand. 1)perfectly inelastic 2)perfectly elastic 3)unitary elasticity 4)elastic 5)inelastic -Refer to the information above to answer this question.What is a demand when an increase in price raises total revenue?

If the government puts a $3 excise tax on a product and as a result,the price rises by $2.50.Is the demand elastic or inelastic? Explain

The list below refers to the price elasticity of demand. 1)perfectly inelastic 2)perfectly elastic 3)unitary elasticity 4)elastic 5)inelastic -Refer to the information above to answer this question.What is a demand when a change in quantity leaves total revenue unchanged?

The list below refers to the price elasticity of demand. 1)perfectly inelastic 2)perfectly elastic 3)unitary elasticity 4)elastic 5)inelastic -Refer to the information above to answer this question.What is a demand when the elasticity coefficient is less than 1 but greater than 0?