The demand for a product is more inelastic: the lower the average income of consumers. the poorer the available substitutes. the longer the time period covered. the better the available substitutes.

Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 29.0. When the price is $7.75, the quantity supplied of motorcycles is 65.0 and the quantity supplied of pancakes is 103.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places.

The income elasticity of demand for an inferior good is A positive. negative.

Which of the following is most likely to have a low price elasticity of demand? A good that is very expensive. A good with no close substitutes. A good that most people consider a luxury. All are equally likely to have a low price elasticity of demand.

If the price elasticity of demand for gasoline equals 0.3, then qn increase in the price of a gallon of gasoline from $3.70 to $3.90  A) decreases total revenue. B) increases total revenue. C) leads to no change in total revenue. D) makes the demand for gasoline elastic. E) Both answers B and D are correct.

Question 18.18.   You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1.  To increase total revenues, you should:         increase the price of the software.        decrease the price of the software.        hold the price of the software constant.        increase the supply of the software. Question 19.19.   A state government wants to increase the taxes on cigarettes to increase tax revenue.  This tax would only be effective in raising new tax revenues if the price elasticity of demand is  unity.        elastic.        inelastic.        perfectly elastic. Question 20.20.   Movie theaters charge lower prices to see a movie in the afternoon than in the evening because there is an  inelastic supply of movies in the evening.        elastic demand to see movies in the evening.        elastic demand to see movies in the afternoon.        inelastic demand to see movies in the afternoon.

When the price of a product is increased 5 percent, the quantity demanded decreases 2 percent. The price-elasticity-of-demand coefficient for this product is   Multiple Choice   0.4.   4.   2.5.   25.

If the price-elasticity coefficient for a good is .75, the demand for that good is described as       normal.        elastic.        inferior.        inelastic.

On a linear demand curve, the lower the price *         a)the elasticity equals -1.       b)the elasticity equals zero.       c)the less elastic is demand.       d)the more elastic is demand.

An increase in quantity demanded is caused by an increase in the price of a substitute of the product. an increase in consumers' income. a decrease in the price of the product. a shift in tastes and preferences.