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econ test 2 ch. 4 true/false
Moving along an elastic portion of a demand curve, the change in price will always be proportionately less than the change in the quantity demanded.
An increase in price will cause a firm's total revenue to increase if demand is price elastic.
Given an upward sloping supply curve, the more inelastic is demand, the greater the fraction of the burden of taxation that is borne by the consumer.
If James is willing to sell an extra concert ticket for $40 and actually sells it for $100, his consumer surplus is $60
When supply shifts to the left, it would make the surplus from a price floor smaller, other things equal.
If the price elasticity coefficient equals 4.2, then demand is relatively inelastic with regard to price.
The main purpose of government price controls is to keep prices from rising above their equilibrium levels.
If a consumer's total expenditure on a good does not vary with price, then that consumer's demand curve is unit elastic over that range of prices.
Consumer surplus increases whenever the price of a good decreases due to a rightward shift of the supply curve.
Price ceilings cause surpluses.