Question 1

The elasticity of supply for airplane travel one year in advance of the departure date is most likely to be
A)substantially lower than -1.
B)between -1 and zero.
C)between zero and 1.
D)around 1.
E)substantially greater than 1.

Accepted Answer

The answer of The elasticity of supply for airplane travel...

Question 2

The elasticity of supply for airplane travel one day in advance of the departure date is most likely to be
A)substantially lower than -1.
B)between -1 and zero.
C)between zero and 1.
D)around 1.
E)substantially greater than 1.

Accepted Answer

The elasticity of supply for airplane travel one day in advance of the departure date is likely to be between zero and 1. This is because airlines cannot easily adjust the number of flights or seats available on such short notice. The supply is relatively inelastic in the short run, meaning that a change in price will result in a relatively small change in quantity supplied.

Question 3

If the supply curve passes through the origin,then the price elasticity of supply is ________.
A)zero
B)1
C)-1
D)greater than 1
E)less than 1 but greater than zero

Accepted Answer

When the supply curve passes through the origin, it indicates a unitary price elasticity of supply, meaning the percentage change in quantity supplied is equal to the percentage change in price, hence the elasticity is 1.

Question 4

Preferences for brussels sprouts increase.The price of brussels sprouts will not change if the price elasticity of
A)demand is 0.
B)demand is 1.
C)supply is 0.
D)supply is 1.
E)supply is infinity.

Accepted Answer

The answer of Preferences for brussels sprouts increase.The price of...

Question 5

In the market for farm crops momentary supply is ________.In the market for farm crops,short-run supply is ________.
A)less elastic than short-run supply;less elastic than long-run supply
B)more elastic than short-run supply;more elastic than long-run supply
C)negative;positive
D)positive;negative
E)perfectly elastic;perfectly inelastic

Accepted Answer

The answer of In the market for farm crops momentary...

Question 6

You are told that a 5 percent increase in the price of a good increases the quantity supplied by 10 percent after one month.Supply of this good is ________.This good is most likely produced using productive resources that are ________.
A)inelastic;plentiful or easily obtained
B)decreasing;unique or rare
C)elastic;plentiful or easily obtained
D)unit elastic;unique or rare
E)elastic;unique or rare

Accepted Answer

The fact that a 5 percent increase in the price of the good increases the quantity supplied by 10 percent indicates that the supply is elastic. This means that the producers are able to respond quickly to changes in price by increasing their output. The fact that supply increases by more than the price increase indicates that the good is plentiful or easily obtained, supporting choice C.

Question 7

The demand for corn increases.As a result,the price of corn ________,and the less elastic the supply of corn,the ________ will be the effect on the price.
A)falls;smaller
B)falls;greater
C)rises;smaller
D)rises;greater
E)None of the above because the change in the price is effected by the price elasticity of demand.

Accepted Answer

When the demand for corn increases, the price of corn will rise. The effect on the price will be greater if the supply of corn is less elastic because producers will not be able to respond as quickly to the increase in demand by increasing the quantity supplied.

Question 8

Goods that can be produced using rare productive resources have a ________ elasticity of supply.The greater the amount of time available after a price change,the ________ is the elasticity of supply.
A)low;smaller
B)high;greater
C)high;smaller
D)low;greater
E)high;more inelastic

Accepted Answer

Goods that require rare productive resources tend to have a low elasticity of supply because it's difficult to increase production quickly or substantially. The more time producers have to adjust to a price change, the greater the elasticity of supply becomes, as they can find more resources, improve technology, or increase capacity.

Quiz 4: Elasticity

The elasticity of supply for airplane travel one year in advance of the departure date is most likely to be

The elasticity of supply for airplane travel one day in advance of the departure date is most likely to be

If the supply curve passes through the origin,then the price elasticity of supply is ________.

Preferences for brussels sprouts increase.The price of brussels sprouts will not change if the price elasticity of

In the market for farm crops momentary supply is .In the market for farm crops,short-run supply is .

You are told that a 5 percent increase in the price of a good increases the quantity supplied by 10 percent after one month.Supply of this good is .This good is most likely produced using productive resources that are .

The demand for corn increases.As a result,the price of corn ,and the less elastic the supply of corn,the will be the effect on the price.

Goods that can be produced using rare productive resources have a elasticity of supply.The greater the amount of time available after a price change,the is the elasticity of supply.