Exhibit 5-1  Demand curvesIn Exhibit 5-1, the demand curve between points b and c is:

A streaming service that costs $5 per month increases their fee to $7 per month.  For most people, this isn’t a large percentage of their income.  We would expect the demand to be 

You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $16 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. producers’ ________ from the tariff is ________.

When the United States imposes a tariff on a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.

Price elasticity of demand is defined as the ratio of the:

Exhibit 5-5  Demand curve for computersIn Exhibit 5-5, the change in total revenue resulting from a change in price from A to D indicates that the demand curve is:

Price (dollars per bushel) Quantity demanded (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12,000 The table above gives the demand schedule for snow peas. If the price of snow peas rises from $6.00 to $7.00 a bushel, total revenue will

Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss?