Question : 71) Suppose Statistics Canada reports that total income earned by : 1384161

71) Suppose Statistics Canada reports that total income earned by Canadian barley farmers has declined as a result of a partial crop failure that has driven up the Canadian price of barley. We can conclude that the price elasticity of demand for barley in Canada is

A) greater than one.

B) exactly one.

C) less than zero.

D) less than one.

E) exactly zero.

72) If the total expenditure on clothing decreases when the price of clothing falls, the price elasticity of demand is

A) greater than one (demand is elastic).

B) less than one (demand is inelastic).

C) unity (demand is unit elastic).

D) not determinable from the information given.

E) exactly zero.

73) If household expenditures on electricity remain constant when the price of electricity increases, the price elasticity for electricity is

A) greater than one (demand is elastic).

B) less than one (demand is inelastic).

C) one (demand is unit elastic).

D) exactly zero.

E) not determinable from the information given.

74) If the total revenue of producers rises for an initial cut in the price of their product but falls for further reductions in price, the price elasticity of demand for the product

A) declines as price falls.

B) is zero.

C) is unity.

D) rises as price falls.

E) rises and then falls.

75) The elasticity of supply for a given commodity is calculated as

A)

B)

C)

D)

E)

76) A value of zero for the elasticity of supply of some product implies that

A) the supply curve is horizontal.

B) supply is highly responsive to price.

C) the supply curve is vertical.

D) the product will not be supplied at any price.

E) there is no supply.

77) If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest price fluctuations?

A) small demand fluctuations and elastic supply

B) large demand fluctuations and elastic supply

C) small demand fluctuations and inelastic supply

D) large demand fluctuations and inelastic supply

E) small demand fluctuations and a unit elastic supply

78) If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest quantity fluctuations?

A) large demand fluctuations and inelastic supply

B) small demand fluctuations and unit elastic supply

C) small demand fluctuations and inelastic supply

D) small demand fluctuations and elastic supply

E) large demand fluctuations and elastic supply

79) Suppose that as the price of some product increases from $4.00 to $5.00 per unit the quantity supplied rises from 500 to 1000 units per month. The price elasticity of supply for this product is

A) 0.33.

B) 2.0.

C) 2.5.

D) 3.0.

E) 1.0.

80) The elasticity of supply for some product will tend to be larger

A) the higher is the elasticity of demand for the product.

B) the lower is the elasticity of demand for the product.

C) the harder it is for firms to shift from the production of this product to another.

D) the easier it is for firms to shift from the production of this product to another.

E) the less time firms have to adjust to price changes.