Price Elasticity of Demand measures

responsiveness of quantity demanded to a change in price

All of the following would make the demand for a good more elastic except

The good represents a small portion of one's income

Why pays most of a tax depends on

Elasticity of supply and demand

Gary Becker suggested that the"The War On Drugs" makes dealers stronger because

demand for drugs is inelastic and the war increases prices

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Elasticity

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Elasticity Review

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Questions 12

Answers

1
Along the elastic portion of a demand curve, if price falls,
Total revenue remains unchanged
Total revenue rises
Total revenue falls
2
Price Elasticity of Demand measures
responsiveness of quantity demanded to a change in price
responsiveness of weight gain with respect to pastries
responsiveness of quantity demanded to a change in income
responsiveness of price to a change in quantity demanded
3
Which of the following would not make the supply of a good more elastic?
The good represents a small share of market for inputs
Global supply
Longer time period under consideration
Per-Unit costs do not change much with expansion of output
4
In the slave redemption example, we said that the redeemers would be more successful if
Supply of slaves is inelastic
Supply of slaves is elastic
Demand for slaves is inelastic
5
Becker suggested what alternative way of decreasing drug use with less associated crime?
"Just say no to drugs" advertisement campaign
Full decriminalization
Legalize and tax
Devote more resources to "war on drugs"
6
Calculate elasticity of demand between points A & B
-2.5
-1.4
-3
-.70
7
Calculate elasticity of supply
4.38
.27
1.44
2.17
8
All of the following would make the demand for a good more elastic except
The good is a luxury
Longer time period under consideration
The good represents a small portion of one's income
There are many substitutes for the good
9
Name that Flag
Mexico
Pablo_Escobaria
Columbia
Germany
10
Which pair of relativess do you like best?
My Dad + Baby Ali
Cousin Steve + Destiny 1
Cousin Tony + Baby Michael
Teta+ Shot of Arak
11
Why pays most of a tax depends on
The price of the good
Elasticity of supply and demand
Who sends the check to the government
12
Gary Becker suggested that the"The War On Drugs" makes dealers stronger because
demand for drugs is inelastic and the war decreases prices
demand for drugs is elastic and the war increases prices
demand for drugs is elastic and the war decreases prices
demand for drugs is inelastic and the war increases prices

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