ECON 300 EXAM 2 STUDY GUIDE ULL EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ACTUAL EXAM|ALREADY GRADED A+
1. A perfectly elastic demand curve is . Horizontal
2. Price elasticity changes along a . Straight-line
demand curve
3. If the percentage change in quantity Inelastic
demanded of a good increases by less than the
percentage change in the price of the good,
then the demand for the good is .
4. A price increase of a good will result in an Total Revenue
increase in
when the demand for the good is inelastic.
5. A decrease in price causes an increase in total revenue Elastic
when demand is .
6. Along the elastic range of a demand curve, Opposite Direction
price changes cause total revenue to
change in the
.
7. A is perfectly inelastic. Vertical Demand Curve
8. The higher the absolute value of the elasticity Elasticity of demand
of de- mand coefficient, the great is the .
9. Economists focus on the of the coefficient elasticity Absolute Value
of demand.
10. Elasticity refers to . Responsiveness
11. Governments examine elasticity of demand tax
to esti- mate how changes in affect their revenues.
1/
7
, ECON 300 EXAM 2 STUDY GUIDE ULL EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ACTUAL EXAM|ALREADY GRADED A+
Excise Tax Rates
12. Elasticity of demand becomes over time.
Greater
13. Number of substitutes
2/
7
100% VERIFIED ANSWERS|ACTUAL EXAM|ALREADY GRADED A+
1. A perfectly elastic demand curve is . Horizontal
2. Price elasticity changes along a . Straight-line
demand curve
3. If the percentage change in quantity Inelastic
demanded of a good increases by less than the
percentage change in the price of the good,
then the demand for the good is .
4. A price increase of a good will result in an Total Revenue
increase in
when the demand for the good is inelastic.
5. A decrease in price causes an increase in total revenue Elastic
when demand is .
6. Along the elastic range of a demand curve, Opposite Direction
price changes cause total revenue to
change in the
.
7. A is perfectly inelastic. Vertical Demand Curve
8. The higher the absolute value of the elasticity Elasticity of demand
of de- mand coefficient, the great is the .
9. Economists focus on the of the coefficient elasticity Absolute Value
of demand.
10. Elasticity refers to . Responsiveness
11. Governments examine elasticity of demand tax
to esti- mate how changes in affect their revenues.
1/
7
, ECON 300 EXAM 2 STUDY GUIDE ULL EXAM WITH ALL CORRECT &
100% VERIFIED ANSWERS|ACTUAL EXAM|ALREADY GRADED A+
Excise Tax Rates
12. Elasticity of demand becomes over time.
Greater
13. Number of substitutes
2/
7
