The elasticity of supply is defined as the ________ change in quantity supplied divided by the ________ change in price.

Using the midpoints method, calculate the price elasticity of demand of Good Z using the following information: When the price of good Z is $10, the quantity demanded of good Z is 85 units. When the price of good Z rises to $15, the quantity demanded of good Z falls to 60 units.

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 ________.

When the demand for a good or service does NOT vary when there is a change in price, the good is ________?

The elasticity of demand is defined as

Using the midpoints method, calculate the price elasticity of demand of Good X using the following information: When the price of good X is $50, the quantity demanded of good X is 400 units. When the price of good X rises to $60, the quantity demanded of good X falls to 300 units.

Elasticity allows economists to measure

Elasticity measures the behavioral response of economic agents in a given situation. Which of the following questions is likely to be answered using elasticity?

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

Which of these questions is the best example of elasticity?

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

When income increases and the demand for a good increases, the good is considered a

When income increases and demand for a good falls, the good is considered a

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

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.

You are the manager of a restaurant and would like to increase revenue. The host staff suggests that you should increase the price of drinks and food, but the servers suggest decreasing the price of drinks and food. You are unsure if you should increase or decrease price, but you know that

Given that total revenue = price x quantity, what will happen to total revenue if price increases when demand is elastic?

Complete the following sentence. Given that total revenue = price x quantity, a reduction in price will lead to an increase in total revenue when demand is

Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, what would you advise the company to do?