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ECON102 Study Guide - Quiz Guide: Demand Curve

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coralhyena595
3 Mar 2015
School
University of Waterloo
Department
Economics
Course
ECON102
Professor
Wokia Kumase

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ECON102 Full Course Notes
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ECON102 Full Course Notes
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Document Summary

Chapter 5: elasticities: price elasticity of demand is equal to the ______ divided by the ______, which we express in terms of the ______ price and the ______ quantity. Percentage change in price; percentage change in quantity demanded; initial; initial. Percentage change in quantity demanded; percentage change in price; average; average. Quantity demanded; price; final; final: if the quantity demanded of fried chicken increases by 90 percent when the price of fried chicken falls. As the price of a candy bar increases from . 00 to . 25 to . 50, marvin continues to buy a dozen candy bars every week. Perfectly elastic elastic: the demand curve for bus rides is a downward-sloping straight line. The price elasticity of demand for bus rides _______. is the same no matter what the price of a bus ride. Decreases as the price of a bus ride falls. Decreases remains the same: the table shows the demand schedule for computer chips.

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Related Questions

29. Suppose that 50 candy bars are demanded at a particular price. If the price of candy bars rises by 4 percent, the number of candy bars demanded falls to 46 candy bars. According to the midpoint method, what does this mean? a. The demand for candy bars in this price range is elastic. b. The demand for candy bars in this price range is inelastic. C. The price elasticity of demand for candy bars is 0. d. The demand for candy bars is unit elastic.

If the price elasticity of demand for a product is -2, this implies that:
 
A. if the price increases by 2 percent, the quantity demanded will decrease by 1 percent.

B. if the price increases by $1, the quantity demanded will decrease by 2 units.

C. the change in quantity demanded divided by the change in price is equal to 2.

D. if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.

E. if the price increases 1 unit, the quantity demanded will decrease by 2 units.

Which is the most appropriate definition for price elasticity of demand? 
 
a) the ratio of the percentage change in quantity demanded to the percentage change in price.
b) the responsiveness of revenue to a change in quantity.
c) the ratio of the change in quantity demanded divided by the change in price.
d) the response of revenue to a change in price.