Elasticity Challenge — Practice Set 3

Which good likely has the most elastic demand?

The flatter the demand curve (at a given point), the ___ elastic demand is.

If two linear demand curves pass through the same price-quantity point, the flatter one has:

A monopolist facing inelastic demand can increase profit by:

The burden of a tax falls more heavily on buyers when:

If |Ed| = 0.4 and price rises 10%, quantity demanded falls by about:

Which is an example of perfectly elastic demand?

Goods that are luxuries tend to have ___ income elasticity than necessities.

If the cross elasticity between printers and ink is -1.2, a 5% fall in printer prices will ___ ink demand by about ___.

A government wants to reduce smoking with minimal deadweight loss per dollar of revenue. It should tax goods with: