Micoreconomics 203
Suppose that Mimi plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Mimi’s demand curve? Use the Midpoint Method to answer this problem.
- A) 0
- B) 1
- C) 8
- D) 0
Youth smoking seems to be more ______ than adult smoking—that is, the quantity of youth smoking will fall by a greater percentage than the quantity of adult smoking in response to a given percentage increase in price.
- A) Elastic
- B) Inelastic
- C) Cross-price elastic
- D) Unitary elastic
When economists are sketching examples of demand and supply, it is common to sketch a demand or supply curve that is close to vertical, and then refer to that curve as _____
- A) Elastic
- B) Inelastic
- C) Unitary elasticity
- D) Income elasticity
When economists are sketching examples of demand or supply that is close to horizontal, they refer to that demand or supply curve as _____
- A) Having zero elasticity
- B) Inelastic
- C) elastic
- D) Price inelasticity
