Question 1

As the price elasticity of supply approaches infinity,very small changes in price lead to

Accepted Answer

A)  very large changes in quantity supplied. 
B)  very small changes in quantity supplied. 
C)  no change in quantity supplied. 
D)  None of the above is correct. 
A)  very large changes in quantity supplied. 
B)  very small changes in quantity supplied. 
C)  no change in quantity supplied. 
D)  None of the above is correct.

Question 2

Which of the following is likely to have the most price elastic demand?

Accepted Answer

A)  clothing 
B)  blue jeans 
C)  Tommy Hilfiger jeans 
D)  All three would have the same elasticity of demand because they are all related. 
A)  clothing 
B)  blue jeans 
C)  Tommy Hilfiger jeans 
D)  All three would have the same elasticity of demand because they are all related.

Question 3

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

Accepted Answer

A)  0.67%. 
B)  0.83%. 
C)  1.20%. 
D)  2.70%. 
A)  0.67%. 
B)  0.83%. 
C)  1.20%. 
D)  2.70%.

Question 4

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Accepted Answer

A)  inelastic. 
B)  elastic. 
C)  unit elastic. 
D)  perfectly inelastic. 
A)  inelastic. 
B)  elastic. 
C)  unit elastic. 
D)  perfectly inelastic.

As the price elasticity of supply approaches infinity,very small changes in price lead to

Which of the following is likely to have the most price elastic demand?

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Supply,demand,and Government Policies

Consumers,producers,and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Market for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 5: Elasticity and Its Application

As the price elasticity of supply approaches infinity,very small changes in price lead to

Which of the following is likely to have the most price elastic demand?

If the price elasticity of supply is 1.5,and a price increase led to a 1.8% increase in quantity supplied,then the price increase is about

When the price of an eBook is $15.00,the quantity demanded is 400 eBooks per day.When the price falls to $10.00,the quantity demanded increases to 700.Given this information and using the midpoint method,we know that the demand for eBooks is

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Supply,demand,and Government Policies

Consumers,producers,and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Market for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving,investment,and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters