The percentage change in the demand for one good divided by the percentage change in the price of a… Show more; The percentage change in the demand for one good divided by the percentage change in the price of a related good is the; Question 3 options: price elasticity of demand. price elasticity of supply. income elasticity. cross price elasticity of demand.; Refer to the above figure. The supply curve is; Question 5 options: elastic at high prices and inelastic at low prices. perfectly elastic. perfectly inelastic. unitary for all prices.; ; When quantity supplied is very responsive to a change in price, supply is; Question 6 options: inelastic. unit-elastic. income sensitive. elastic.; When a lot of good but imperfect substitutes exist for a good, the demand for the good will tend to be Question 7 options: elastic. inelastic. perfectly elastic. unitary. When total expenditures remain unchanged when there is a change in price, demand is Question 8 options: not related. elastic. unitary. inelastic. Suppose the short-run supply curve is a straight line of slope +1 that intersects the origin. The long-run supply curve will be Question 9 options: flatter and intersect the vertical axis. horizontal. flatter and intersect the horizontal axis. steeper and intersect the origin. Which of the following is not a determinant of the price elasticity of demand? Question 10 options: Existence of substitutes. How large a share of the consumer’s budget the good accounts for. The amount of time allowed for adjustment to changes in the price of the commodity. The price level in the economy. A firm increases price and total revenues decrease. Hence, we know that Question 12 options: its demand is unit-elastic elastic. its demand is price elastic. its demand has zero elasticity. its demand is price inelastic. When good substitutes exist the price elasticity of demand will be Question 13 options: elastic. inelastic. perfectly unit-elastic. unit-elastic. Which of the following statements is false? Question 14 options: Supply elasticity can never equal 1. A horizontal supply curve is possible. Time is an important consideration in determining supply elasticity. A perfectly inelastic supply curve is a vertical line. A firm increases price and total revenues increase. Hence, we know that Question 16 options: its demand has zero elasticity. its demand is price inelastic. its demand is unit-elastic elastic. its demand is price elastic. For which of the following would the price elasticity of demand be greatest? Question 17 options: Salt. Gasoline. Tickets to the Super Bowl. Pepsi Cola. Refer to the above table. Suppose the price of X increases from $10 to $12. What is the cross price elasticity of demand between X and Y? Question 19 options: +1.8333 +0.5789 +0.545 -1.833 If the slope of a demand curve is constant, then we know that Question 20 options: elasticity of demand varies along the demand curve. elasticity of demand is also elastic everywhere. elasticity of demand is constant and elastic. elasticity of demand is inelastic everywhere.; ; ; ; ; ; ; • Show less