Microeconomics Chp. 5

If the supply of old, low-quality guns is perfectly elastic, then a gun buyback program will:

The elasticity of supply measures:

If hamburgers and hotdogs have a cross-price elasticity of demand of 2.34, they would be classified as:

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.3. The estimated impact on oil prices of a 5 percent increase in the supply of oil is a:

An increase in income from $3,000 to $4,000 leads to a decrease in the quantity demanded of peanut butter from 11 to 10 jars. The income elasticity of demand for peanut butter is:

The price of soda has increased by 2%, leading to an increase in the quantity demanded of sports drinks by 10%. The cross-price elasticity of demand between soda and sports drinks is:

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.2. The estimated impact on oil prices of a 1.5 percent increase in the supply of oil is a:

If turkey and ham have a cross-price elasticity of demand of 2, they would be classified as:

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.4. What is the estimated impact on oil prices of a 2 percent increase in the supply of oil?

Assume the price elasticity of demand for oil is −0.6 and the price elasticity of supply for oil is 0.3. What is the estimated impact on oil prices of a 1.5 percent increase in the supply of oil?

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.4. What is the estimated impact on oil prices of a 1.5 percent increase in the supply of oil?

The elasticity of demand for goods such as vending machine snacks, shoelaces, and pencils is relatively inelastic, because these goods are:

The price of boxed cereal has increased by from $2 to $4, leading to an increase in the quantity demanded of oatmeal from 5 to 6 boxes. The cross-price elasticity of demand between oatmeal and boxed cereal is _____, so the products are _____.

Assume the price elasticity of demand for oil is −0.6 and the price elasticity of supply for oil is 0.3. What is the estimated impact on oil prices of a 2 percent increase in the supply of oil?

Economists understand that gun buyback programs are less effective than their proponents hope they will be because economists incorporate their understanding of the:

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.3. What is the estimated impact on oil prices of a 2 percent increase in the supply of oil?

An increase in income from $3,000 to $4,000 leads to an increase in the quantity demanded of milk from 10 to 12 gallons. The income elasticity of demand for milk is _____, so milk is a(n) _____ good.

An increase in income from $3,000 to $4,000 leads to an increase in the quantity demanded of smart phones from 10 to 20 phones. The income elasticity of demand for smartphones is _____, so smartphones are a(n) _____ good.

Since the demand for food is _____ compared to the demand for computer chips, when productivity increases in both industries, supply shifts to the right, _____ farm revenue and _____ computer chip revenue.

When the government successfully restricts the supply of drugs, drug prices _____, leading revenue to _____, since demand is _____.

If the supply curve for old, low-quality guns were very steep, a gun buyback program would be:

The price of bread has decreased by 5 percent, leading to an increase in the quantity demanded of butter by 1 percent. The cross-price elasticity of demand between bread and butter is:

Assume the price elasticity of demand for oil is −0.5 and the price elasticity of supply for oil is 0.3. What is the estimated impact on oil prices of a 1.5 percent increase in the supply of oil?

The price of soda has increased by from $2 to $2.50, leading to an increase in the quantity demanded of sports drinks from 20 to 22 bottles. The cross-price elasticity of demand between sports drinks and soda is _____, so the products are _____.

The price of donuts has increased from $1 to $1.50, leading to a decrease in quantity demanded of coffee from 10 to 5 coffees. The cross-price elasticity of demand between donuts and coffee is: