elasticity – Flashcards
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elasticity differs from slope as a measure of responsiveness to changes in prices because
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percentage changes do not depend on the units of measurement, whereas slope does
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if the elasticity of demand for baseball game is -.57, then one can conclude that
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demand for a baseball game is inelastic.
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the product that is most inelastic is one that is
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not a luxury item
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the passage of time increases the elasticity of demand for many goods because
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time allows people to discover more substitues for goods
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if a state decided to place a tax on home heating oil, over time
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demand would become more elastic and tax revenue would decline
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generic macaroni and cheese is an inferior good. demand for generic macaroni and cheese is likey to increase when
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income decreases
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which of the following scenarios is likey to make the supply of maine lobsters more elastic?
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---->time passes to allow lobstermen to adjust to market conditions.
the price of lobster increases by 2 dollars per pound.
the prices of butter, potatoes, and lobster bibs decreases.
lobster locating technology improves.
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the market supply curve is
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more elastic in the long run than in the short run.
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suppose the price of sweet corn increases this summer(and is expected to remain at this level for at least a couple of years). all other things being the same, you would expect:
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the quantity supplied to increase more in the following summers than this summer.
