The elasticity of demand is used to determine if a change in price results in a shortage or a surplus. find the market equilibrium. determine if consumers will or will not buy a product. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes.

AN INCREASE IN INCOME UPON THE DEMAND CURVE OF AN INFERIOR GOOD

What types of things might impact price elasticity?

Assume that you work in a movie theater and you want to increase revenue at the theater after the pandemic. The pandemic has caused people to find many activities that are alternatives to going to the movie theater. Fill in the blanks below with the words that best complete the sentences: Because consumers have found more substitutes for going to the movie theater, price elasticity of demand for movie tickets is more likely to be        [ elastic or inelastic ]. Because of this price elasticity of demand, you should                           [increase or decrease]  the price of movie tickets if you want to increase revenue.

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.

If the demand for a product is elastic, then a rise in price will     keep total spending the same, but increase the quantity demanded.     cause total spending on the good to increase.     cause total spending on the good to decrease.     keep total spending the same, but reduce the quantity demanded.

The price elasticity of demand measures which of the following?         how responsive the quantity demanded is to changes in price         the percentage-slope of the demand curve     the slope of the demand curve based on price       the rate at which demand changes when price changes

Pick an answer  Demand for good X is perfectly elastic. Currently, the price of good X is $5 and quantity demanded is 100,000. If the price increases to $7, quantity demanded will be:     0   60,000   100,000   Impossible to determine.

The supply curve will be more price elastic if the good has few substitutes the time the producer has to adjust is long demand is price elastic demand is price inelastic

Which of the following conditions would result in a higher price elasticity of demand? a longer period of time all of these the good makes up a large portion of one's budget more substitutes