Question : 21) The price of lumber increased by 10 percent and : 1241502

 

21) The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent. The supply of lumber is

A) inelastic.

B) perfectly elastic.

C) perfectly inelastic.

D) unit elastic.

E) elastic.

22) Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied. This response means that gasoline has

A) an elastic supply.

B) an inelastic supply.

C) a unit elastic supply.

D) an inelastic demand.

E) an elastic demand.

 

23) The price of beef increased by 20 percent and the quantity supplied increased by 10 percent. The supply of beef is

A) elastic.

B) perfectly elastic.

C) perfectly inelastic.

D) inelastic.

E) unit elastic.

 

24) If the price of corn increases by 20 percent and the quantity supplied of corn increases by 30 percent, then supply is

A) elastic and the elasticity of supply equals 1.5.

B) inelastic and the elasticity of supply equals 1.5.

C) elastic and the elasticity of supply equals 0.66.

D) inelastic and the elasticity of supply equals 0.66.

E) either elastic or inelastic, but more information about the elasticity of demand is needed to determine which.

25) Suppose the current price of barley is $7 per bushel and at that price 100,000 bushels are grown by a Colorado farmer. If the price of barley rises to $8 and quantity supplied increases to 130,000 bushels, then using the midpoint method, the price elasticity of supply for barley equals

A) 13.33.

B) 26.78.

C) 1.96.

D) 0.51.

E) zero.

 

26) Jess owns a sandwich shop. The price of a sandwich recently increased from $5 to $7. Jess responded by increasing the quantity of sandwiches she supplied from 70 to 90 per day. Using the midpoint method, Jess’s price elasticity of supply is equal to

A) 1.33.

B) 0.75.

C) 3.00.

D) 4.00.

E) 1.50.

 

27) The price of one bedroom apartments in Cheyenne increased from $55,000 to $65,000 and the quantity of apartment for sale increased from 25 to 30. Using the midpoint method, the price elasticity of supply for apartments in Cheyenne is equal to

A) 0.916.

B) 0.75.

C) 1.09.

D) 2.18.

E) 0.08.

28) Suppose an increase in demand causes the price to increase from $2 to $4 and the quantity to increase from 1,000 to 1,800. Using the midpoint method, the elasticity of supply equals

A) 0.86.

B) 1.17.

C) 2.74.

D) 0.68.

E) None of the above answers is correct.

 

29) Suppose a decrease in demand causes the price to decrease from $4 to $3 and the quantity to decrease from 1,000 to 700. Using the midpoint method, the elasticity of supply equals

A) 0.81.

B) 1.24.

C) 2.83.

D) 0.18.

E) None of the above answers is correct.

 

30) When the price of a product increases from $35 to $45, the quantity supplied increases from 30 units to 40 units per week. Using the midpoint method, the price elasticity of supply is

A) 0.00.

B) -1.1.

C) 1.14.

D) 1.35.

E) 0.88.

 

 

 

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