ch 6 (2)

# ch 6 (2) - 1 Ifsupplyiselastic A B C D...

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If supply is elastic, A) supply changes more than demand. B) quantity supplied changes more than price. C) the percentage change in quantity supplied is greater than the percentage change in price. D) price changes more than quantity supplied. ack: If supply is elastic, the percentage change in quantity supplied is greater than the percentage change in price. By using percentages to calculate the changes in price and quantity, the  f measure do not affect the outcome. If lowering the price of movie tickets from \$9 to \$7 causes average weekly sales to increase from 1900 to 2100 tickets, then , according to the midpoint formula, the price elasticity of  demand is A) 0.01 B) 0.25 C) 0.4 D) 2.5 Feedback: (200/2000)/(2/8) = .04. See the formula in the textbook. A perfectly elastic demand curve would be A) vertical. B) horizontal. C) a straight, downward sloping line. D)

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## This note was uploaded on 09/11/2011 for the course TERM 1 taught by Professor Smith during the Spring '11 term at FIT.

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ch 6 (2) - 1 Ifsupplyiselastic A B C D...

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