Eco05L2 1 The price of a bus ride decreases, but the total revenue of the bus company does not change. The demand for bus rides is _____________________. unit elastic inelastic elastic perfectly inelastic 2 Marvin loves chocolate truffles. As the price of a chocolate truffle increases from $1 to $2 to $3, Marvin continues to buy a dozen chocolate truffles every week. Marvin's demand for chocolate truffles is _______________. elastic perfectly inelastic illustrated by a horizontal demand curve unit elastic 3 Dan sells newspapers. Dan says that a 10 percent increase in the price of a newspaper will decrease the quantity of newspapers demanded by 8 percent. According to Dan, the demand for newspapers is ______________. perfectly elastic elastic inelastic unit elastic 4 When demand is __________, a decrease in price _____________ total revenue. unit elastic; increases elastic; decreases elastic; increases inelastic; increases 5 Webster Dictionaries and Oxford Dictionaries are almost perfect substitutes. The price elasticity of demand for Webster Dictionaries ____________________. is 1 is almost infinity depends on the complements for dictionaries is almost zero 6 Blue pens and black pens are close substitutes. The cross elasticity of demand for black pens with respect to the price of blue pens is ________________. equal to 1 zero positive negative 7 If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ______________ and X and Z are ________________. price inelastic; complements price inelastic; income elastic substitutes; complements complements; substitutes 8 Of the following goods, the North American demand for ______________ has the largest income elasticity of demand. rice Mediterranean cruises newspapers compact cars 9 As Mary's income increases by 20 percent, her demand for tickets to National Hockey League games increases by 10 percent. Mary's demand for tickets is _______; for Mary, hockey tickets are __________ good. inelastic; an inferior elastic; a normal inelastic; a normal elastic; an inferior 10 The supply of lettuce in the short run will be ___________ than the supply in the long run and ______________ than the supply today. more elastic; more elastic less elastic; less elastic less elastic; more elastic more elastic; less elastic Please enter your name and press the SEND button