16. Demand is said to be elastic if a. the price of the good responds substantially to changes in demand. b. demand shifts substantially when the price of the good changes. c. buyers do not respond much to changes in the price of the good. d. the quantity demanded responds substantially to changes in the price of the good.

Consider the supply of coal. What would make the supply of coal more​ elastic? The supply of coal would become more elastic if A. The time horizon becomes longer. B. It becomes a larger portion of a consumer's budget C. more substitutes were available. D. it were more of a luxury.

a. Explain what “cross-elasticity of demand” is.  b. What is a “substitute good”? Give an example. Does it have a positive or negative cross-elasticity of demand?

1. The price of a good rises from $6 to $8. Thus, the quantity demanded of that good falls from 150 to 75 units. Using the point-slope formula, calculate the Price Elasticity of Demand. Note: You’ll use this answer to help you with Question 2 & 3 (coming up next).   A. -1.50   B. -0.66   C. -2   D. -0.04   E. -25   F. -1   2. Given your response in Question 1, classify the coefficient of the Price Elasticity of Demand.   A. Elastic   B. Inelastic   C. Perfectly Elastic   D. Perfectly Inelastic   E. Unit Elastic   3. Which of the following statements is the best interpretation of the coefficient of the Price Elasticity of Demand in Question 1?   A. There will be a 0.66 percent decrease in the Quantity Demanded.   B. A 1 percent increase in the Price of a good corresponds to a 0.66 percent decrease in the Quantity Demanded for that good.   C. A 1 percent increase in the Price of a good corresponds to a 1.55 percent increase in the Quantity Demanded for that good.   D. Given the Price…