Which of the following statements is an example of perfectly elastic demand​?
answer
Sherry is overwhelmed with buyers of her peaches when she lowers their price by a penny a pound compared to other sellers in the​ farmers' market.
question
When the price of a good increased by 5 ​percent, the quantity demanded of it decreased 10 percent.
Demand for this good is​ ______.
answer
elastic
question
Which of the following statements describes an elastic demand​?
answer
Mary's quantity demanded of milk decreased by 8 percent when the price of milk rose by 5 percent.
question
When the price of a good increased by 10 ​percent, the quantity demanded of it decreased 2 percent.
The price elasticity of demand is​ ______. A price rise will​ ______ total revenue.
answer
0.20; increase
question
When the price of a good increased by 10 ​percent, the quantity demanded of it decreased 2 percent.
An example of a good with such a demand is​ _______.
answer
clothing
question
The price elasticity of demand for Russell​'s chocolate chip cookies is 1.5. Russell wants to increase his total revenue.
Russell should​ _____ the price of his chocolate chip cookies because the demand for chocolate chip cookies is​ ______.
answer
lower; elastic
question
When the price of a good increased by 3 ​percent, the quantity demanded of it decreased 6 percent.
Most​ likely, this good​ ______ and ​ ______.
answer
is a luxury; has good substitutes
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Which of the following is an example of price elasticity of demand​?
answer
When the price of bananas increased by 5 percent and nothing else changed, the quantity of bananas demanded decreased by 2 percent.
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Which of the following statements describe an inelastic demand​?
answer
Megan did not buy too many hockey tickets even though their price dropped by 10 percent.
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The graph illustrates the demand for movie tickets.
The demand for movie tickets is elastic over the price range​ $7 to​ $9.
answer
True
question
The graph illustrates the demand for movie tickets.
If the price of a movie ticket falls from​ $9 to​ $7, total revenue​ ______.
answer
increases because demand is elastic
question
The graph illustrates the demand for movie tickets
When the price is​ $8 a​ ticket, the price elasticity of demand for movie tickets is _____.
answer
4
question
Which of the following statements describes a perfectly inelastic demand​?
answer
Walgreens does not find any change in the number of people buying chlorthalidone after a 7 percent rise in its price.
question
The demand for plums is unit elastic if​ _____.
answer
a 5 percent rise in the price of plums results in a 5 percent decrease in the quantity of plums demanded
question
When the price of tomatoes rises from​ $3 per pound to​ $4 per​ pound, the quantity of tomatoes sold decreases from 15 pounds to 10 pounds. Total revenue​ _____, and using the total revenue test​, we can determine that the demand for tomatoes is​ _____ .
answer
decreases from​ $45 to​ $40; elastic
question
One winter​ recently, the price of home heating oil increased by 20 percent and the quantity demanded decreased by 2 percent.
Use the total revenue test to determine whether the demand for home heating oil is elastic or inelastic.
Total revenue​ ______ because the percentage increase in the price is​ ______ than the percentage decrease in the quantity demanded.
answer
increases; greater
question
One winter​ recently, the price of home heating oil increased by 20 percent and the quantity demanded decreased by 2 percent.
Use the total revenue test to determine whether the demand for home heating oil is elastic or inelastic.
Because total revenue and the price change in​ _________, the demand for home heating oil is​ ______.
answer
the same direction; inelastic
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