# chapter 6 - Name Date Use the following to answer question...

This preview shows pages 1–4. Sign up to view the full content.

Name: __________________________ Date: _____________ Use the following to answer question 1: 1. (Table: Johnson's Income and Expenditures) Johnson's income elasticity of demand for magazines is: A) negative. B) 0. C) greater than 0 but less than 1. D) 1. 2. The price elasticity of a good will tend to be greater: Page 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Use the following to answer question 3: Figure: Estimating Price Elasticity 3. (Figure: Estimating Price Elasticity) Between the two prices, P 1 and P 2 , which demand curve has the highest price elasticity (absolute value)? 4. If the percentage change in the quantity demanded of a good is greater than the percentage change in income, then this good will have an income elasticity: Page 2
Use the following to answer question 5: Figure: Demand Curve for Oil 5. (Figure: Demand Curve for Oil) In the figure, the price elasticity of demand between \$20 and \$21, using the midpoint method, is approximately: A) 0.21. B) 0.49. C) 2.1. D) 4.9.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern