Question 1 If the price elasticity of supply is 1.5, we know that supply is:
Question 2 Refer to the accompanying table. When the price drops from $5 to $3, price elasticity of demand for sushi (using the midpoint method) at an income of $30,000 is:
Question 3 If the income elasticity of demand for noodles is –2 and the percentage change in the quantity consumed is 5%, what is the percentage change in income?
Question 4 At higher prices, the price elasticity of demand is likely to be __________, whereas it is likely to be __________ at lower prices.
Question 5 If the crossprice elasticity between Good A and Good B is –1.5 and the percentage change in quantity demanded of Good B is 15%, what is the percentage change in the price of Good A?
Question 6 Super Economy Brand products have an income elasticity of –1.4. Thus, these are __________ goods.
Question 7 To keep the percentage change in quantity demanded equally proportional to the percentage change in price when the prices rise by 5%, a consumer would need to ________ quantity demanded by ________.
Question 8 If the percentage change in the quantity consumed of pizza is 8% and the percentage change in income is 2%, what is the income elasticity of demand for pizza?
Question 9 Demand for which of the following goods/services is likely to be the LEAST elastic in a Minnesota winter?
Question 10 The income elasticity of demand for a good measures the responsiveness of ________ to a change in ________.
Question 11 While there are many pizza places in Curtisville, Pappy’s Pizza is known for its distinctive deepdish pizza with an almost pielike crust, whereas Momma’s Pizza Pizzazz is comparable to many other restaurants. Pappy’s is likely to find that it can ________ prices to increase total revenue, and Mommas must ________ prices to increase total revenue.
Question 12 The initial price of picture frames is $6 and suppliers offer 20 frames. When the price falls to $4, suppliers offer only 10. The price elasticity of supply is:
Question 13 A producer knows that the price elasticity for his product is –0.5. He wants to increase quantity demanded by 30%. By what percentage does he need to change the price?
Question 14 A 15% increase in the price of cookies results in a 9% decrease in the quantity of cookies sold. The revenue received by cookie suppliers will ________ because the price elasticity of demand for cookies is ________.
Question 15 If the owner of Sally’s Salty Treats finds that, in the long run, she can trade one type of input for another, the price elasticity of supply is:
Question 16 Which one of the following pairs of goods is likely to have a negative crossprice elasticity of demand?
Question 17 Winged Wonders is a specialty store that sells butterfly ornaments. The owner wants to increase her total revenue and knows that the price elasticity of demand for her product is –0.4. What should she do to her price?
Question 18 We would expect to see a positive crossprice elasticity between:
Question 19 The Sunny Softball league found that, when it changed its ticket prices from $10 to $5, there was a more than proportional but not infinite increase in attendance. The price elasticity of demand is:
Question 20 If the crossprice elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a(n) ________ change in the quantity demanded for Good A