Question : 101.Suppose that when the price of novels goes from $15 : 1379016

101.Suppose that when the price of novels goes from $15 to $20 per book, production increases from 550 million books per year to 800 million books. Using the mid-point method, the price elasticity of supply would be:

A. 0.77.

B. 28.5 percent.

C. 37 percent.

D. 1.4.

102.A determinant of the price elasticity of supply that is also a determinant of the price elasticity of demand is:

A. availability of inputs.

B. flexibility of the production process.

C. adjustment time.

D. availability of outputs.

103.Some determinants of the price elasticity of supply are:

A. availability of substitutes, adjustment time.

B. availability of inputs, adjustment time.

C. flexibility of the production process, availability of substitutes.

D. availability of inputs, presence of competition.

104.A baker of chocolate chip cookies is likely to have a ______________ price elasticity of supply than the seller of rare baseball cards due to ______________.

A. more elastic; the availability of inputs

B. less elastic; the availability of inputs

C. less elastic; a shorter adjustment time

D. less elastic; a more flexible production process

105.A rare coin dealer is likely to have a _______________ price elasticity of supply than a coffee shop due to ____________________.

A. more elastic; the availability of inputs

B. less elastic; the availability of inputs

C. more elastic; a longer adjustment time

D. more elastic; a shorter adjustment time

106.A tavern is likely to have a ______________________ price elasticity of supply than an antiques dealer due to ______________________.

A. more elastic; availability of inputs

B. less elastic; availability of inputs

C. less elastic; a longer adjustment time

D. less elastic; a shorter adjustment time

107.A farmer is likely to have a _____________ price elasticity of supply than an auto mechanic due to ________________.

A. more elastic; a more flexible production process

B. less elastic; a more flexible production process

C. less elastic; a less flexible production process

D. more elastic; a less flexible production process

108.A microchip manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.

A. more elastic; a more flexible production process

B. more elastic; greater availability of inputs

C. less elastic; a less flexible production process

D. more elastic; less availability of inputs

109.The price elasticity of supply is __________ elastic over time because ___________.

A. less; producers get accustomed to the price changes

B. less; the ideal number of firms have time to move into or out of the industry

C. more; producers have a longer time to adjust their production decisions

D. more; producers get accustomed to the price changes

110.Cross-price elasticity refers to:

A. how much the demand for one good changes in response to a change in the price of a different good.

B. how much the demand for one good changes in response to a change in its price.

C. the magnitude of the shift in demand for a good in response to a change in its price.

D. None of these is true.