Demand is said to be ____________ when the quantity demanded is responsive to a price change.

1. inelastic
2. elastic
3. unit elastic
4. income elastic

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A price floor will often create ________________________in a market

1. an increase in supply
2. an increase in demand
3. a surplus
4. a shortage

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If hamburgers and fries are complements, then an increase in the price of hamburgers will result in a ___________________ for fries.

1. reduction in demand
2. increase in demand
3. increase in supply
4. reduction in supply

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If the demand curve is____________ and firms lower their prices, total revenue will _____________

1. inelastic; rise
2. unit elastic, rise
3. elastic; rise
4. elastic; fall

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If labor supply rises more rapidly than labor demand rises, we would expect that wages will:

1. fall
2. rise
3. stay the same
4. fall, rise, or stay the same, depending on the relative slopes of the supply and demand curves

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A change in government regulation reduces production costs for a COVID drug. As a result, the_______________ curve for the drug will shift to the ____________.

1. supply; right
2. demand; right
3. supply; left
4. demand; left

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If the supply curve is perfectly elastic, then an increase in demand will result in a(n) ______________and___________________ .

1. decrease in the price; no change in the quantity exchanged
2. increase in the quantity exchanged; no change in the price
3. increase in the price; no change in the quantity exchanged
4. increase in quantity exchanged; an increase in the price

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If a change in technology is a complement to labor, the labor ______curve will shift to the _______ .

1. demand; right
2. demand; left
3. supply; left
4. supply; right

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When demand is elastic,

1. price elasticity of demand is less than 1.
2. consumers are not very responsive to changes in price.
3. the percentage change in quantity demanded resulting from a price change is greater than the percentage change in price.
4. consumers are responsive to price changes.