Topic: Other Important Elasticities Skill: Conceptual Reflective Thinking Learning Outcome: Micro-6 22) If the elasticity of supply is positive, the labor-supply curve would be A) horizontal. B) vertical. C) downward sloping. D) upward sloping. Answer: D Diff: 1 Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6 23) Refer to Figure 5.6. The market is initially in equilibrium at Point and supply shifts A from to Which of the following statements is S1 S2. true? A) Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas. D) The market cannot move to a new equilibrium until there is also a change in demand. Answer: C Diff: 2 24) At a price of $4, quantity supplied is 100; and at a price of $6, quantity supplied is 120. Using the midpoint formula, the price elasticity of supply is ________ and supply is ________. A) 0.1; inelastic B) 0.45; inelastic C) 2.2; elastic D) 10; elastic Answer: B Diff: 2
Topic: Other Important Elasticities Skill: Conceptual Reflective Thinking Learning Outcome: Micro-6 22) If the elasticity of supply is positive, the labor-supply curve would be A) horizontal. B) vertical. C) downward sloping. D) upward sloping. Answer: D Diff: 1 Topic: Other Important Elasticities Skill: Conceptual AACSB: Reflective Thinking Learning Outcome: Micro-6 Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6 23) Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true? A) Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas. D) The market cannot move to a new equilibrium until there is also a change in demand. Answer: C Diff: 2 24) At a price of $4, quantity supplied is 100; and at a price of $6, quantity supplied is 120. Using the midpoint formula, the price elasticity of supply is ________ and supply is ________. A) 0.1; inelastic B) 0.45; inelastic C) 2.2; elastic D) 10; elastic Answer: B Diff: 2