Micro - Homework 5

If the price elasticity of demand for a good is 0.2, then a 3 percent decrease in price results in a

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by

When the price of a good is $5, the quantity demanded is 120 units per month; when the price is $7, the quantity demanded is 100 units per month. Using the midpoint method, the price elasticity of demand is about

Refer to Table 5-2. Using the midpoint method, if the price falls from $60 to $40, the price elasticity of demand is

If the price elasticity of demand for tuna is 0.7, then a 1.5% increase in the price of tuna will decrease the quantity demanded of tuna by

If the demand for textbooks is inelastic, then a decrease in the price of textbooks will

Total revenue will be at its largest value on a linear demand curve at the

Refer to Figure 5-4. Assume, for the good in question, two specific points on the demand curve are (Q = 1,000, P = $40) and (Q = 1,500, P = $30). Then which of the following scenarios is possible?

Refer to Figure 5-6. Sellers’ total revenue would increase if the price

Refer to Figure 5-8. For prices above $5, demand is price