. When a supply curve is relatively steep, a. sellers are not very responsive to changes in price. b. supply is relatively inelastic. c. supply is relatively elastic. d. Both a and b are correct. . Generally, a firm is more willing and able to increase quantity supplied in response to a price change when a. the relevant time period is short rather than long. b. the relevant time period is long rather than short. c. supply is inelastic.
. When a supply curve is relatively steep, a. sellers are not very responsive to changes in price. b. supply is relatively inelastic. c. supply is relatively elastic. d. Both a and b are correct. . Generally, a firm is more willing and able to increase quantity supplied in response to a price change when a. the relevant time period is short rather than long. b. the relevant time period is long rather than short. c. supply is inelastic.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:22. When a supply curve is relatively steep,
a. sellers are not very responsive to changes in price.
b. supply is relatively inelastic.
c. supply is relatively elastic.
d. Both a and b are correct.
23. Generally, a firm is more willing and able to increase quantity supplied in response to a price change when
a. the relevant time period is short rather than long.
b. the relevant time period is long rather than short.
c. supply is inelastic.
d. the firm is experiencing capacity problems.
24. The price elasticity of supply along a typical supply curve is
a. constant.
b. equal to zero.
c. higher at low levels of quantity supplied and lower at high levels of quantity supplied.
d. lower at low levels of quantity supplied and higher at high levels of quantity supplied.
25. If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would
a. increase by 4.2%.
b. increase by 6%.
c. decrease by 4.2%.
d. decrease by 6%.
26. Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase
in the demand for cheese causes the price of cheese to increase by 15%, then the quantity supplied of cheese will
increase by
a. 0.4% in the short run and 4.6% in the long run.
b. 1.7% in the short run and 0.7% in the long run.
c. 9% in the short run and 21% in the long run.
d. 25% in the short run and 10.7% in the long run.
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