Moving downward along a linear (straight-line) downward-sloping demand curve, the
A) price elasticity of demand does not change.
B) quantity demanded decreases.
C) demand becomes more elastic.
D) demand becomes less elastic.
E) total revenue never changes.
D
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Last year, Jim bought 8 tickets to sporting events when his income was $30,000 . This year, his income is $33,000 . and he purchased 10 tickets to sporting events. Holding other factors constant and using the midpoint method, it follows that Jim's income elasticity of demand is about
a. 0.43, and Jim regards tickets to sporting events as inferior goods. b. 0.43, and Jim regards tickets to sporting events as normal goods. c. 2.33, and Jim regards tickets to sporting events as inferior goods. d. 2.33, and Jim regards tickets to sporting events as normal goods.
Select the phrase that correctly completes the following statement. "A decrease in the expected future price caused an increase in the supply of smartphones. As a result
A) the price of smartphones decreased and the demand for smartphones increased." B) the equilibrium quantity of smartphones decreased." C) the price of smartphones decreased and the quantity of smartphones demanded increased." D) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease."