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

Missouri can produce 15,000 tons of pecans per year or 40,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 24,000 tons of pears per year. If these two states were to engage in trade, which of the following is true?

Which of the following is most likely to decrease the price of personal computers in the short-run?

Exhibit 5-7  Demand curve for concert ticketsIn Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:

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, the tariff ________ the domestic production of shirts in the United States

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

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:

Suppose that you have won a free ticket to see Lady Gaga performing live.  Tickets normally sell for $100, but your free ticket has no resale value.  You are really not a Lady Gaga fan—the most you would have been willing to pay for a ticket is $45!  You really want to see Shania Twain in concert on the same night.  If you choose instead to go to see Shania Twain, which is really more your style, your opportunity cost of missing the Lady Gaga concert is:

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 ________.

Suppose the quantity demanded is 1,000 bushels of peaches per year when the price is $3 per bushel and 1,500 bushels when the price is $1 per bushel. The price elasticity of demand in this range of the demand curve is: