A) 0.4 percent decrease in the quantity demanded.
B) 2.5 percent decrease in the quantity demanded.
C) 4 percent decrease in the quantity demanded.
D) 40 percent decrease in the quantity demanded.
F) All of the above
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Correct Answer
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A) The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper supply curve.
B) The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter supply curve.
C) Given two prices with which to calculate the price elasticity of supply, that elasticity would be the same for both curves.
D) A decrease in demand will increase total revenue if the steeper supply curve is relevant, while a decrease in demand will decrease total revenue if the flatter supply cure is relevant.
F) B) and C)
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Correct Answer
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A) greater the price elasticity of demand at that point.
B) smaller the price elasticity of demand at that point.
C) closer the price elasticity of demand will be to the slope of the curve.
D) greater the absolute value of the change in total revenue when there is a movement from that point upward and to the left along the demand curve.
F) C) and D)
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Correct Answer
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