JEOPARDY

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JEOPARDY

• Unit 4 ELASTICITY

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Categories
Terms / Concepts Terms / Concepts 2 T/F Excise Taxes Miscellaneous Calculations
100 100 100 100 100
200 200 200 200 200
300 300 300 300 300
400 400 400 400 400
500 500 500 500 500
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• Price Elasticity of demand is inelastic if the
  coefficient is

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• An elastic demand curve looks like this Draw it!

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• If prices increase while the price elasticity of
  demand is elastic, what happens to a firms Total
  Revenue?

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• What does a negative Income elasticity
  coefficient indicate about the product?

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• When do we consumers end up paying more of the
  sales tax? Why? (refer to elasticity here)

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T / F? Change the false!

• Total Revenue
• Income x Quantity Traded

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• Name the 3 determinants of price elasticity of
  demand.

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T / F? Change the false!

• If demand is inelastic and price falls, then
  total revenue will increase.

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T / F? Change the false!

• Supply elasticity is measured by percentage
  change in quantity supplied divided by percentage
  change in quantity demanded

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T / F? Change the false!

• A straight line (constant-sloped) demand curve
  does not imply constant elasticity.

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• What are
• Equilibrium
• Price and
• Quantity
• BEFORE tax?

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What is the dollar amount of the tax?
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• What are the new equilibrium price and quantity?
  How much of the tax are we consumers paying?

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• How much of the tax are sellers paying?

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• Looking at the tax paid and the graph below, what
  can you
• Conclude about
• this product?
• Explain.

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Cross price elasticity of demand is a positive
value. What is the relationship between products
A and B?

• -

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Name a product with a perfectly inelastic demand
curve.
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What is the value of price elasticity of demand
when total revenue is maximized? What is the
technical term for this elasticity?
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Price increased by 20. The price elasticity of
demand coefficient is 0.5 What is the percentage
change in the quantity demanded?
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Lisa makes bracelets and when she charges 20
each, she sells 800/month. One month, she
lowered her price to 18 and sold 756 worth of
bracelets. 1) What is the price elasticity of
demand for Lisas bracelets? (Calculate )2)
What can you say about this products elasticity?
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What is the price elasticity of demand for
A?
Year Income Price A Quantity A Price B Quantity B
1 50,000 2.50 100 20 800
2 50,000 2.80 90 20 750
3 50,000 2.80 80 30 700
4 55,000 2.80 90 30 720
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Year Income Price A Quantity A Price B Quantity B
1 50,000 2.50 100 20 800
2 50,000 2.80 90 20 750
3 50,000 2.80 80 30 700
4 55,000 2.80 90 30 720
What is the price elasticity of demand for B?
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Year Income Price A Quantity A Price B Quantity B
1 50,000 2.50 100 20 800
2 50,000 2.80 90 20 750
3 50,000 2.80 80 30 700
4 55,000 2.80 90 30 720

• What is the income elasticity for product A?

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Year Income Price A Quantity A Price B Quantity B
1 50,000 2.50 100 20 800
2 50,000 2.80 90 20 750
3 50,000 2.80 80 30 700
4 55,000 2.80 90 30 720

• What is the income elasticity for product B?

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Year Income Price A Quantity A Price B Quantity B
1 50,000 2.50 100 20 800
2 50,000 2.80 90 20 750
3 50,000 2.80 80 30 700
4 55,000 2.80 90 30 720

• What is the cross-price elasticity of demand for
  A when the price of B changes? What is the
  relationship between the two products?