# Elasticity of demand is closely related to the slope

• Test Prep
• 13
• 75% (4) 3 out of 4 people found this document helpful

This preview shows page 5 - 7 out of 13 pages.

practice exam for exam 1

Elasticity of demand is closely related to the slope of the demand curve The from ECO 182 at SUNY Buffalo State College

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 17 / Exercise 7
Welding: Principles and Applications
Jeffus
Expert Verified
25.Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, thea.steeper the demand curve will be.b.flatter the demand curve will be.c.further to the right the demand curve will sit.d.closer to the vertical axis the demand curve will sit.
____26.When the price of bubble gum is \$0.50, the quantity demanded is 400 packs per day. When the price falls to \$0.40, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for bubble gum is
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 17 / Exercise 7
Welding: Principles and Applications
Jeffus
Expert Verified
____27.The midpoint method for calculating elasticities is convenient in that it allows us to
____28.Suppose demand is perfectly elastic, and the supply of the good in question decreases. As a result,
____29.Which of the following is not possible?a.Demand is elastic, and a decrease in price causes an increase in revenue.b.Demand is unit elastic, and a decrease in price causes an increase in revenue.c.Demand is inelastic, and an increase in price causes an increase in revenue.d.Demand is perfectly inelastic, and an increase in price causes an increase in revenue.
____30.For which of the following goods is the income elasticity of demand likely highest?
____31.For which of the following types of goods would the income elasticity of demand be positive and relatively large?
____32.If, for two goods, the cross-price elasticity of demand is 1.25, then
____