Question 21 (3 points) From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left. { A 90% of the tax the government imposed on Good X was successfully passed on to consumers by the company. o % change in quantity demanded % change in price Positive cross-price elasticity of demand Demand for the good is unitary elastic % change in quantity demanded % change in income Horizontal supply curve Substitutes Income elasticity of 0.12 A negative implies the good is an inferior good. Price elasticity of demand A company can increase its revenue by decreasing the price of its product Supply is price inelastic with price elasticity of supply equal to 0.5 Demand for the good is more price-inelastic than supply is Demand for the good is price- elastic Supply of the good is infinitely or perfectly elastic Total Revenue Quantity sold x unit price The price of a good increased by 10% which increased quantity supplied by 5% A 2% price increase leads to a 2% decline in quantity demanded of Good X. 10. 11 12. 13. 14. 15. Example of a normal good which is a necessity Negative cross-price elasticity of demand Supply is highly elastic with price elasticity of supply equal to 2 Price elasticity of demand for the good is equal to O Price elasticity of supply for the good is equal to O Total Profit