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People search harder for substitutes for oil when the price of oil is high.

Yesterday, two things happened: Giselle got a pay raise and the price of orange juice fell. If tomorrow, Giselle buys more pineapple juice, which of the following MUST be true?

Suppose the long-run elasticity of oil demand is –0.5. If the price of oil rises by 20%, then the quantity demanded will rise by 2%.

The elasticities of demand and supply for the market for sugar are  Ed = ‒1.4 Es = 0.6. What will happen to the price of sugar if demand rises by 20%?

Imagine that a technological innovation reduces the costs of producing high-quality steel. The supply curve for steel increases. 

Calculate total surplus. (Write just the number, no dollar sign.) 

The expression below explains why revenue rises when:  

Based on the figure below, at 35 MBD of oil, there would be wasted resources.

As you learned, the elasticities of demand and supply are crucial in determining how the burden of a tax (or the benefit of a subsidy) is divided between buyers and sellers. Under what conditions for supply or demand would a seller actually be able to avoid bearing any of the burden of a tax?

Which of the following statements about bovine respiratory disease is FALSE?