ap econ - elasticity, demans, supply quiz

if a 10 percent increase in the price of a good leads to a 25 percent decrease in the quantity demanded of the good, demand is...

B) relatively elastic

if the government imposes a tax on the production of cars, which of the following will occur in the market for cars?

D) the supply curve will shift to the left

an increase in the supply of coffee could be caused by...

B) a decrease in the cost of labor used to produce coffee

which of the following will cause the demand for a normal good to increase?

B) a decrease in the price of a complementary good

to determine whether 2 goods are complements, one would calculate the...

D) cross price elasticity of demand

a 10 percent increase in the price of a good results in a 4 percent increase in total revenue. from this information, it can be concluded that the demand over this range of prices...

B) is inelastic

what is the price elasticity of supply between $3 and $4 in the graph above?

B) it is greater than 1, and the supply is relatively elastic

according to the law of demand, which of the following occurs when the price of a good increases?

E) the quantity demanded of the good decreases