29) Suppose the price of burgers increases from $2 to $3 each. The degree to which quantity demanded responds to this price increase depends on theA) price elasticity of demand.B) the price elasticity of supply.C) income elasticity of demand.D) cross elasticity of demand.
30) The price elasticity of demand measures
31) The price elasticity of demand equals magnitude of the
32) The worst drought in over 50 years has decimated crops of soy beans and corn in the United States. (Source: New York Times, August 10, 2012). Because the production of corn has decreased, prices are expected to increase by 25 percent. These data are insufficient for calculating the elasticity of demand because we also need to know the
33) The price elasticity of demand for new cars is 1.2. Hence, a 10 percent price increase willA) decrease the quantity of new cars demanded by 1.2 percent.B) increase consumer expenditure on new cars by 1.2 percent.C) decrease the quantity of new cars demanded by 12 percent.D) increase consumer expenditure on new cars by 12 percent.
34) The price elasticity of demand can range between