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?

The elasticity of demand for gasoline is estimated to be around 0.01. This implies that if gas prices increased by 10 percent, then

You are in charge of the local city-owned golf course. You need to increase the revenue generated by the golf course in order to meet expenses. The mayor advises you to increase the price of a round of golf. The city manager recommends reducing the price of a round of golf. You realize that

The elasticity of demand for gasoline is estimated to be around 0.01. This implies that if gas prices increased by 10 percent, then