Sapling Learning Questions Test 2 – Flashcards

cosmetic surgery more or less elastic than emergency surgery?

monthly electric consumption more or less elastic than emergency surgery?

wall street journal more or less elastic than wall street journal at the airport?

over longer periods of time demand tends to be

with fewer substitutes demand tends to be

demand for an object that uses a large portion of your budget tends to be

demand for a luxury item tends to be

You are the product manager of Tide at Proctor and Gamble. The company is considering a 18.00% price increase and the CEO asks you to tell him how quantity demanded will change as a result. You know that the price elasticity for Tide is -1.10. You answer the CEO that quantity demanded will change by

Contain Yourself!, a plastic container company, raises the price of its signature “lunchbox” container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000.

Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.

CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.

When Ruko, a device used to stream movies at home, increases prices by 51% total revenue decreases by 67%.

When Cinema Supreme decreases ticket prices by 5%, total revenue does not change.

When BlueBox, a DVD rental kiosk, increases its prices by 48%, total revenue increases by 22%.

What does income elasticity of demand measure?

If income elasticity of demand for ibuprofen was 0.73, then you could say that ibuprofen is ______

what does cross elasticity of demand measure?

Suppose the cross elasticity of demand between Aleve and aspirin is 2.51. What can you say about Aleve and aspirin?

how does price elasticity of supply measure?

If the price elasticity of supply for aluminum is 0.09, then price elasticy of supply for aluminum is

equation for price elasticity of demand

In the long run, the shortages of available housing resulting from rent controls are ____ pronounced that (as) they are in the short run

One explanation for this is that in the long run, firms can make changes to the amount of housing they provide ____ easily than (as) they can in the short run

Because of differences in firms’ ability to make changes to quantity supplied, the long-run supply curve for housing is modeled as a line that is ___ sleep than (as) the short-run supply curve

Therefore, supply is ___ elastic in the short run than (as) in the long run

TF?
When price ceillings are imposed, consumers pay lower explicit prices but often face higher costs in terms of waiting in line for goods and services

TF?
A problem with price ceilings is that they lead in surpluses

TF?
Price ceilings result in resources being allocated to activities with the highest possible values

TF?
Price ceilings result in a reduction in mutually beneficial exchanges

TF?
Though they may face higher prices, consumers usually see an increase in product quality when price ceilings are imposed

Betty purchases raw (unpasteurized) milk even though the sale of raw milk is illegal

What is an example of price gouging law?

What is a price ceiling?

Advocates believe elasticity of labor demanded is …

What is the advocate’s economic reasoning?

those opposed to high minimum wage argue that the elasticity of labor demand for unskilled labor is ___. this is because firms can adjust their employment and production better in the long run

if a minimum wage is set above the equilibrium wage, then the more ___ the labor supply and the more ____ the labor demand, the higher the unemployment rate. In the long run, both labor supply and labor demanded are more ____

welfare economics studies

consumer surplus is equal to the difference between

consumer surplus is shown graphically as the area

the more ____ the demand and the more ___ the supply

total inefficiency caused by a tax is also known as

governments that are interested in minimizing the efficiency costs of taxation should only tax goods where