Micro & Macro. Chapter 5 【Elasticity and Its Application】

1. Determinants of the price elasticity of demand
Consider some determinants of the price elasticity of demand:
A good with many close substitutes is likely to have relatively ____ demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.

2. Calculating the price elasticity of demand - A step-by-stepguide
Suppose that during the past year, the price of a laptop computer rose from...

3. Using the midpoint method
The following graph shows two known points (X and Y) on a demand curve for apples.

4. Elastic, inelastic, and unit-elastic demand
...For each of the regions, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic.

5. The variety of demand curves
...Using the graph, complete the table that follows by indicating whether each statement is true or false.

6. Elasticity and total revenue
...Use the green rectangle (triangle symbols) to compute total revenue at various prices along the d

7. Using the income elasticity of demand to characterize goods
Data collected from the imaginary economy of ... reveals that a ...

8. Substitutes, complements, or unrelated
You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: penguin patties...

9. Application Elasticity and hotel rooms
The following graph input tool shows the daily demand for hotel rooms at the ... To help the hotel management better understand the market, an economist identified three

10. Price elasticity of supply in the short run and long run

lace the orange line (square symbol) on the graph to show the most likely long-run supply curve for pears..

11. Calculating the price elasticity of supply

12. The variety of supply curves
The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A.
Using the graph, complete the table that follows by indicating whether each statement is true or false.

13. Application Demand elasticity and agriculture
Consider the market for apples. The following graph shows the weekly demand for apples and the weekly supply of apples.