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If the quantity demanded of a good is sensitive to a change in the price of that
good, demand is said to be price inelastic.

Using the midpoint method to calculate elasticity, if an increase in the price of pencils from €0.10 to €0.20 reduces the quantity demanded from 1000 pencils to 500 pencils, then the demand for pencils is unit price elastic.

The demand for tyres should be more inelastic than the demand for Michelin brand tyres.

The demand for aspirin over one month should be more elastic than the demand for aspirin over one year.

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded of that good.

If the cross-price elasticity of demand between two goods is positive, the goods are likely to be complements.

If the demand for a good is price inelastic, an increase in its price will increase total expenditure in that market.

The demand for a necessity such as petrol tends to be price elastic.

If a demand curve is linear, the price elasticity of demand is constant along it.

If the income elasticity of demand for a bus ride is negative, then a bus ride is an inferior good.

The supply of cars for this week is likely to be more price inelastic than the supply of cars for this year.

If the price elasticity of supply for blue jeans is 1.3, an increase in the price of blue jeans of 10 percent would increase the quantity supplied of blue jeans by 13 percent.

The price elasticity of supply tends to be more inelastic as the firm's production facility reaches maximum capacity.

An advance in technology that shifts the market supply curve to the right always increases total revenue received by producers.

The income elasticity of demand for luxury items, such as diamonds, tends to be large (greater than 1).

If a small percentage increase in the price of a good greatly reduces the quantity demanded for that good, the demand for that good is

The price elasticity of demand is defined as

In general, a flatter demand curve is more likely to be

In general, a steeper supply curve is more likely to be

Which of the following would cause a demand curve for a good to be price inelastic?

The demand for which of the following is likely to be the most price inelastic?

If the cross-price elasticity between two goods is negative, the two goods are likely to be

If a supply curve for a good is price elastic, then

If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered, once the fish are caught the fisherman's price elasticity of supply for fresh fish is

A decrease in supply (shift to the left) will increase total revenue in that market if

If an increase in the price of a good has no impact on the total revenue in that market, demand must be

If consumers always spend 15 percent of their income on food, then the income elasticity of demand for food is

Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to

If supply is price inelastic, the value of the price elasticity of supply must be

If there is excess capacity in a production facility, it is likely that the firm's supply curve is

Suppose that at a price of €30 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to €40 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town?

Suppose that at a price of €30 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to €40 per month, the number of subscribers will fall to 20,000. At which of the following prices does Small Town Cablevision earn the greatest total revenue?

If demand is linear (a straight line), then price elasticity of demand is

If the income elasticity of demand for a good is negative, it must be

If consumers think that there are very few substitutes for a good, then