Question : 41) Goods that can be produced at a constant or : 1241504

 

41) Goods that can be produced at a constant or very gently rising opportunity cost have

A) an elastic demand.

B) an inelastic demand.

C) an inelastic supply.

D) an elastic supply.

E) a unit elastic demand.

 

42) For a product with a rapidly increasing opportunity cost of producing additional units,

A) demand is price elastic.

B) supply is price elastic.

C) demand is price inelastic.

D) supply is price inelastic.

E) the demand curve is vertical.

 

43) The greater the amount of time that passes after a price change, the

A) less elastic supply becomes.

B) more elastic supply becomes.

C) more negative supply becomes.

D) steeper the supply curve becomes.

E) None of the above answers is correct.

44) Many manufactured goods have an ________ supply if production plans have only a short period to change and as time passes and all production adjustments are made, the supply of the good ________ from the initial response.

A) inelastic; increases

B) elastic; decreases

C) elastic; increases

D) inelastic; decreases

E) inelastic; does not change

 

45) When the price of a textbook is $95, the quantity of textbooks supplied is 90 million a year and when the price rises to $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is

A) elastic

B) perfectly elastic

C) inelastic

D) perfectly inelastic

E) unit elastic.

 

46) Supply is unit elastic when the

A) supply curve is upward sloping.

B) price elasticity of supply is positive.

C) percentage change in the quantity supplied equals the percentage change in price.

D) supply curve is horizontal.

E) supply curve is vertical.

47) When supply is perfectly inelastic, the supply curve is

A) upward sloping but not a straight line.

B) vertical.

C) downward sloping.

D) horizontal.

E) a straight line with a 45 degree slope that goes through the origin.

 

48) The price elasticity of supply equals the percentage change in the

A) quantity demanded divided by the percentage change in the price of a substitute or complement.

B) quantity supplied divided by the percentage change in price.

C) quantity demanded divided by the percentage change in price.

D) supply divided by the percentage change in the demand.

E) quantity supplied divided by the percentage change in the quantity demanded.

 

49) If a firm supplies 200 units at a price of $50 and 100 units at a price of $40, using the midpoint method, what is the price elasticity of supply?

A) 0.33

B) 1.00

C) 3.00

D) 5.00

E) 8.50

50) If the quantity supplied increases by 8 percent when the price rises by 2 percent, the price elasticity of supply is ________ .

A) 10.0

B) 6.0

C) 0.25

D) 16.0

E) 4.0

 

51) If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is

A) greater than one and supply is elastic.

B) negative and supply is inelastic.

C) less than one and supply is elastic.

D) less than one and supply is inelastic.

E) greater than one and supply is inelastic.