The size of the change in the quantity demanded of a good or service due to change in its price is measured by the elasticity of demand. When the percentage change in the quantity demanded for a good or service is more than the percentage change in price, the demand for that good or service is ________ and the price elasticity coefficient is ________.

Elastic supply occurs if the change in quantity supplied is ________ to a change in price.

A perfectly elastic supply curve is

Elasticity is relevant when trying to understand

Elasticity refers to

Which of the following concepts can be used to understand the effects of price changes on quantity demanded and quantity supplied, as well as the effect of raising taxes on revenue from the tax?

Which of these questions is the best example of elasticity?

Which of the following factors does NOT influence the price elasticity of demand of a product?

Determining the price elasticity of demand involves all of the following factors, but NOT

Which of the following questions would be asked by an economist studying elasticity?

If wage increases by 10%, a(n) ________ worker is likely to supply 7% more labor because elasticity of labor supply is assumed to be ________.

Suppose the price of apples increase by 20%, resulting in consumers to purchase 15% more pears. Given this information, it appears that

When a 5% increase in income causes a 3% drop in quantity demanded of a good

A 10% decrease in the price of potato chips leads to a 30% increase in the quantity of soda demanded. It appears that

Negative cross price elasticity of demand between two goods indicates that the two goods are

If consumers find cola and iced tea good substitutes, then it is likely that

You are the manager of the public transit system. You are informed that the system faces a deficit, but you cannot cut service, which means you cannot cut costs. Your only hope is to increase revenue by increasing fares. You are advised that the estimated price elasticity of demand for the first few months after a price change is about −0.3. Select the statement that best describes the results of raising the fare in the short run.

You are the manager of the public transit system. You are informed that the system faces a deficit, but you cannot cut service, which means you cannot cut costs. Your only hope is to increase revenue by increasing fares. You are advised that the estimated price elasticity of demand, several years after the price change, will be about −1.5. Select the statement that best describes the results of raising the fare in the long run.

Suppose there is a major technological advance in the production of a good that causes production costs to fall. If demand for the product is relatively inelastic, what will happen in the market?