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What happens to consumer surplus after a price increase?
If a price decrease from $60 to $40 causes quantity demanded to increase from 6 to 12, what happens to total revenue?
Is demand in this market elastic, inelastic, or unit elastic?
Suppose the government wants to decrease the number of cars that use the Sydney Harbor Bridge by imposing a toll. The toll will be most effective at reducing traffic congestion if the price elasticity of demand for using the bridge is:
By what percent will it increase/decrease? Enter only the number, with no additional words or symbols.
Is this good elastic, inelastic, or unit elastic at this price?
Using this, what can you conclude about widgets and gadgets?
Suppose that a 5% increase in the price of widgets leads to a 15% decrease in the demand of gadgets. What is the cross price elasticity of demand?
Will demand increase or decrease?
Consider the market for popcorn. Match each of the following events to the appropriate graph.