Home » 2 Demand is ___ if a small change in price creates a large change in demand. inelastic b. stagnant c.

2 Demand is ___ if a small change in price creates a large change in demand. inelastic b. stagnant c.

2 Demand is ___ if a small change in price creates a large change in demand.

a. inelastic

b. stagnant

c. elastic

3 The elasticity of supply is defined as the ___ changes in quantity supplied divided by the ___ change in price.

a. marginal; percentage

b. total; percentage

c. percentage; percentage

5 When income increases and the demand for a good increases, the good is considered a..

a. inferior good

b. normal good

c. complementary good

6 When a 5% increase in income causes a 3% drop in quantity demanded of a good

a. the income elasticity is .6 and the good is an inferior good

b. the cross-price elasticity is .6 and the good is an inferior good

c. the income elasticity is 1.67 and the good is a normal good

7 You are the manager of the public transit system. You are informed that the system faces a deficit, but you cannot cut service, which means you cannot cut costs. Your only hope is to increase revenue by increasing fares. You are advise that the estimated price elasticity of demand for the first few months after a price change is about -0.3. Select the statement that best describes the results of raising the fare in the short run.

a. Total revenue will rise incrementally as the demand fluctuates and price moves back and forth between being elastic and inelastic.

b. Total revenue falls, since demand changes and becomes price inelastic.

c. Total revenue rises immediately after the fare increase, since demand over the immediate period is price inelastic.

Please answer them thank you!

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10