Chapter 6

The ease of switching from one good to another

Why the high price for antiques?

Two unrelated goods

If two goods are substitutes, then the cross elasticity of demand will be

The midpoint formula for calculating elasticity _____ the 2 prices and the 2 elasticizes

The passage of _____ involved in making a decision is one determinant of the price elasticity of demand

The ______ elasticity of demand measures the degree to which consumers respond to a change in their earnings by buying more or less of a particular good

When consumers decrease their purchase of a good as their income rises, it is known as a(n) ________ good.

The price elasticity of demand for most farm products is relatively price

Main sources of gold price fluctuations

The formula for the cross elasticity of demand is written as: the % change in the qty demanded of one product _____ by the % change in the price of another product

If the qty supplied by producers is relatively insensitive to price changes, supply is

The _____ ______ of demand measures the responsiveness or sensitivity of consumers to a price change

The price elasticity of demand and _________ revenue are inversely related

The proportion of income allocated to a particular good or service is a determinant of:

Pick 2 inferior goods
*Bus tickets from LA to NY
*Steak
*Plane ticket from LA to NY
*hamburger

The change in qty, divided by the avg of qty 1 and wty 2, divided by the change in price divided by the avg of price 1 and price 2 is known as the ______ formula or approach for the price elasticity of demand

The % change in qty supplied divided by the % change in measures the price elasticity of _________

The % change in qty demanded divided by the % change in income is the formula for the:

The % change in qty demanded of good X divided by the % change in the price of product Y is known as the:

What is the term that indicates the total amt the seller receives from the sales of a product in a particular time period

A _________ good is one that is demanded more as income rises

Luxuries v. ______ is one of the determinants of the price elasticity of demand

How will the price elasticity of demand for a good that is considered to be a luxury compare to one that is a necessity

Which of the following are viable arguments against the legalization of illegal drugs

Digital camera and memory sticks are what type of goods

If the qty supplied by producers is relatively responsive to price changes, supply is relatively price

The price elasticity of demand is ______ when price and total revenue change in opposite directions

In the short run, plant size _____

Which of the following products are targeted by govt legislatures for increased excise taxes?

The _____ the negative cross elasticity coefficient, the greater is the complementary relationship between two goods

Product demand is generally more ______ when the time period under consideration is longer.

The formula for the income elasticity of demand is the % change in qty demanded _______ by the % change in consumer income.

How many products (goods/services) are considered when referring to the cross elasticity of demand formula.

Arguments against legalization of illegal drugs?

The price elasticity of demand for most farm products is relatively price ________

How is a buyer’s responsiveness to price changes measured?

What is the sign of the income elasticity coefficient if the good is a normal good?

Arguments in favor of legalizing illegal drugs

Because the physical availability of gold is limited and gold production is costly, the supply of gold is

The ____________ market period is the length of time over which producers are unable to respond to a change in price with a change in qty supplied

_____ in price when a product is relatively price elastic will lead to a decrease in total revenue

A relatively large percentage change in qty demanded divided by a relatively smaller change in price yields relatively price ______________ demand.

Demand is relatively price _______ when price and total revenue move in the same direction

Which of the following would be characteristics of goods with relatively elastic demand?

With a unit elastic demand, when prices changes, total revenue______

If the price elasticity of demand is inelastic, the qty demanded changes by_______ percentage than does price

As you move from higher to lower prices, the price elasticity of demand

When recessions occur in the economy, the ______ of demand help predict which products will rise or fall in demand

Demand is relatively price ____ if the percentage change in price leads to a larger percentage change in the qty demanded

The price elasticity coefficient of supply is ____ if greater than 1

Which of the following goods and services would most likely exhibit an inelastic price elasticity of demand coefficient

Which type of elasticity shows how responsive demand is to a change in earrings

How will the price elasticity of a product that is broadly defined compare with one that is narrowly defined?

The price elasticity of supply is more _______in the long run than in the short run

Why is the supply curve more elastic in the long run that in the short run

Which is true when demand is unit elastic?
*% chg in qty demanded is = to % chg in price
*% in qty demanded is > the % of chg in price
*The % qty demanded is < the % chg in price

When cross elasticity is _____ the goods are complementary

Which goods/services would most likely exhibit an inelastic price elasticity of demand coefficient?
*Beef, auto repairs, Medical care, milk, dining out

What type of demand is represented by a small chg in price that leads to a lg chg in qty demanded?

In the immediate market period, the _____ curve is vertical

Which of the following would most likely exhibit an inelastic price elasticity of demand coefficient?
Auto Repairs, Medical Care, Milk, Dinning Out , Beef

When an increase/decrease in prices does not change total revenue demand is ____ elastic

coca cola and new balance sneakers would have a cross elasticity coefficient of

When the price elasticity of demand is elastic, the % chg in qty demanded exceeds the % chg in price. What is the value of the elasticity coefficient?

the _____ formula is used for calculating the price elasticity of demand

price is most elastic in the ____ run

the price elasticity of demand is ______ when price and total revenue change in opposite directions
= to 1, < 1, 1>, < 0

a small % chg in qty demanded divided by a larger % change in price results in relatively price _______ demand

the cross price elasticity of demand measures

the income elasticity of demand shows the responsiveness of demand for a good/service when an individual's ______ changes