Question 1

In 1985 a desert community stopped pumping from a 1000 foot well because it had run dry.In 2005 the price of water doubled.The community then drilled the well deeper and started pumping again.In this community,

Accepted Answer

Water production faces increasing opportunity costs.

Question 2

Lakeville is a small community that completely surrounds a scenic lake up north.Lakeville's zoning regulations require that residential lots have at least one hundred feet of frontage,or shoreline,on the lake.The total shoreline of the lake is 5,000 feet.
Assuming that the zoning regulations in Lakeville remain enforced,elasticity of supply of lakefront property is,

Accepted Answer

Since the demand is high,the price per lot would increase and the quantity supplied would also increase as there is incentive to build more homes.

Question 3

The championship game will be held next weekend in your college's 40,000-seat stadium.The supply of tickets:

Accepted Answer

Price volatility is common in markets in which demand curves fluctuate sharply and supply curves are highly inelastic.

Question 4

Oil and oil products remain the main fuel for cars,planes,ships,and power plants.The amount of oil still in the earth is finite.According to this information,the supply of gasoline is relatively _______.

Accepted Answer

Supply is relatively inelastic because supply is finite.

Question 5

Antony's Pizza uses the same dough,sauce,and cheese for pizza and calzones.When the price of pizza is low Antony produces more calzones.For Antony,with respect to price,supply of pizza is ________ compared to supply at a pizza restaurant that does not serve calzones.

Accepted Answer

In this case supply is more elastic.

Question 6

Lakeville is a small community that completely surrounds a scenic lake up north.Lakeville's zoning regulations require that residential lots have at least one hundred feet of frontage,or shoreline,on the lake.The total shoreline of the lake is 5,000 feet.
There are currently 40 homes on the lake.If demand for lakefront property in Lakeville increased,

Accepted Answer

Since the demand is high,the price per lot would increase and the quantity supplied would also increase as there is incentive to build more homes.

Question 7

For OutBack Steakhouse,seating capacity is limited in the short run.In the long run they can add as many seats as they want.Therefore,the price elasticity of supply for the meals in OutBack would be _____ in the short run than in the long run.

Accepted Answer

The price elasticity would be lower.

Question 8

You read online that,at current rates of production,the yearly world supply of food is sufficient to feed the projected 2010 population of the earth,and that after 2010 there will be massive starvation.One assumption behind this prediction is that:

Accepted Answer

In the long-run elasticity of food supply is inelastic.

Question 9

Lakeville is a small community that completely surrounds a scenic lake up north.Lakeville's zoning regulations require that residential lots have at least one hundred feet of frontage,or shoreline,on the lake.The total shoreline of the lake is 5,000 feet.
Suppose there are currently 50 homes on the lake,each with one hundred feet of shoreline.If demand for lakefront homes increased,

Accepted Answer

Since the demand is high,the price per lot would increase and the quantity supplied would also increase as there is incentive to build more homes.

Question 10

Mike knows how to make hamburgers (like many other people)and got a minimum wage job at Burger King.With respect to price elasticity of supply,the supply curve for hamburgers is __________ because the inputs to production are __________.

Accepted Answer

Supply is perfectly elastic with respect to price if elasticity of supply is infinite.

Quiz 4: Elasticity

In 1985 a desert community stopped pumping from a 1000 foot well because it had run dry.In 2005 the price of water doubled.The community then drilled the well deeper and started pumping again.In this community,

The championship game will be held next weekend in your college's 40,000-seat stadium.The supply of tickets:

Oil and oil products remain the main fuel for cars,planes,ships,and power plants.The amount of oil still in the earth is finite.According to this information,the supply of gasoline is relatively _______.

Antony's Pizza uses the same dough,sauce,and cheese for pizza and calzones.When the price of pizza is low Antony produces more calzones.For Antony,with respect to price,supply of pizza is ________ compared to supply at a pizza restaurant that does not serve calzones.

For OutBack Steakhouse,seating capacity is limited in the short run.In the long run they can add as many seats as they want.Therefore,the price elasticity of supply for the meals in OutBack would be _____ in the short run than in the long run.

You read online that,at current rates of production,the yearly world supply of food is sufficient to feed the projected 2010 population of the earth,and that after 2010 there will be massive starvation.One assumption behind this prediction is that:

Mike knows how to make hamburgers (like many other people) and got a minimum wage job at Burger King.With respect to price elasticity of supply,the supply curve for hamburgers is because the inputs to production are .

Quiz 4: Elasticity

In 1985 a desert community stopped pumping from a 1000 foot well because it had run dry.In 2005 the price of water doubled.The community then drilled the well deeper and started pumping again.In this community,

The championship game will be held next weekend in your college's 40,000-seat stadium.The supply of tickets:

Oil and oil products remain the main fuel for cars,planes,ships,and power plants.The amount of oil still in the earth is finite.According to this information,the supply of gasoline is relatively _______.

Antony's Pizza uses the same dough,sauce,and cheese for pizza and calzones.When the price of pizza is low Antony produces more calzones.For Antony,with respect to price,supply of pizza is ________ compared to supply at a pizza restaurant that does not serve calzones.

For OutBack Steakhouse,seating capacity is limited in the short run.In the long run they can add as many seats as they want.Therefore,the price elasticity of supply for the meals in OutBack would be _____ in the short run than in the long run.

You read online that,at current rates of production,the yearly world supply of food is sufficient to feed the projected 2010 population of the earth,and that after 2010 there will be massive starvation.One assumption behind this prediction is that:

Mike knows how to make hamburgers (like many other people) and got a minimum wage job at Burger King.With respect to price elasticity of supply,the supply curve for hamburgers is __________ because the inputs to production are __________.

Mike knows how to make hamburgers (like many other people) and got a minimum wage job at Burger King.With respect to price elasticity of supply,the supply curve for hamburgers is because the inputs to production are .