Exam 5: Elasticity and Its Applications: The Elasticity of Supply

Holding all other factors constant and using the midpoint method,if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60,then supply is

In January the price of dark chocolate candy bars was $2.00,and Willy's Chocolate Factory produced 80 pounds.In February the price of dark chocolate candy bars was $2.50,and Willy's produced 110 pounds.In March the price of dark chocolate candy bars was $3.00,and Willy's produced 140 pounds.The price elasticity of supply of Willy's dark chocolate candy bars was about

If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts,the price elasticity of supply approaches

Figure 5-15 -Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points D and G?

If a 30 percent change in price causes a 15 percent change in quantity supplied,then the price elasticity of supply is about

A key determinant of the price elasticity of supply is the time period under consideration.Which of the following statements best explains this fact?

A linear,upward-sloping supply curve has

A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the market price is $13 per unit.Using the midpoint method,for this range of prices,the price elasticity of supply is about

If the price elasticity of supply is zero,then

On a certain supply curve,one point is (quantity supplied = 200,price = $2.00)and another point is (quantity supplied = 250,price = $2.50).Using the midpoint method,the price elasticity of supply is about

If the quantity supplied responds only slightly to changes in price,then

Which of the following statements is valid when supply is perfectly elastic at a price of $4?

Figure 5-15 -Refer to Figure 5-15.Along which of these segments of the supply curve is supply least elastic?

If a 15% change in price results in a 20% change in quantity supplied,then the price elasticity of supply is about

If a 40% change in price results in a 25% change in quantity supplied,then the price elasticity of supply is about

Figure 5-17 -Refer to Figure 5-17.Using the midpoint method,what is the price elasticity of supply between point B and point C?

Figure 5-15 -Refer to Figure 5-15.Using the midpoint method,what is the price elasticity of supply between points A and B?

Scenario 5-3 Suppose that the supply of aged cheddar cheese is inelastic,and the supply of bread is elastic.Both goods are considered to be normal goods by a majority of consumers.Suppose that a large income tax increase decreases the demand for both goods by 10%. -Refer to Scenario 5-3.The price elasticity of supply for aged cheddar cheese could be

A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each.At a price of $20.00,the t-shirt maker would be willing to supply 100 t-shirts.Using the midpoint method,the price elasticity of supply for t-shirts is about

In which of the following situations would supply be the most elastic?