Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
8th Edition
ISBN: 9781337292603
Author: Mankiw
Publisher: Cengage Learning (2018)
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Question
Chapter 5, Problem 4CQQ
To determine
The elasticity and market entry and exist.
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Suppose we observe that when the market price of a good rises dramatically (e.g., the price of houses during the pandemic) the quantity traded increases only slightly,
This would be because
Answers A - D
A.supply has increased and demand is very elastic.
B.supply has decreased and demand is very elastic.
C.supply has increased and demand is very inelastic.
D. demand has increased and supply is very inelastic.
The demand for a product is likely to be more elastic:
A. when a product is a necessity.
B. the less time that passes.
C. when a product has more substitutes available.
D. when the market for a product is less narrowly defined.
E. both a and b.
During Ramadan season, stores give a lot of discounts and enjoy huge sales and profits. This is because their products have_____.
a.
Inelastic demand
b.
Unitary elastic demand
c.
Elastic demand
d.
Perfectly Inelastic demand
Chapter 5 Solutions
Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
Ch. 5.1 - Define the price elasticity of demand. Explain...Ch. 5.2 - Define the price elasticity of supply. Explain...Ch. 5.3 - Prob. 3QQCh. 5 - A life-saving medicine without any close...Ch. 5 - The price of a good rises from 8 to 12, and the...Ch. 5 - A linear, downward-sloping demand curve is a....Ch. 5 - Prob. 4CQQCh. 5 - An increase in the supply of a good will decrease...Ch. 5 - Over time, technological advance increases...Ch. 5 - Prob. 1QR
Ch. 5 - List and explain the four determinants of the...Ch. 5 - Prob. 3QRCh. 5 - Prob. 4QRCh. 5 - If demand is elastic, how will an increase in...Ch. 5 - What do we call a good with an income elasticity...Ch. 5 - How is the price elasticity of supply calculated?...Ch. 5 - If a fixed quantity of a good is available, and no...Ch. 5 - Prob. 9QRCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Suppose the price elasticity of demand for heating...Ch. 5 - A price change causes the quantity demanded of a...Ch. 5 - Prob. 5PACh. 5 - The price of coffee rose sharply last month, while...Ch. 5 - Suppose that your demand schedule for pizza is as...Ch. 5 - The New York Times reported (Feb. 17, 1996) that...Ch. 5 - Prob. 9PACh. 5 - Prob. 10PACh. 5 - You are the curator of a museum. The museum is...Ch. 5 - Prob. 12PA
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- B. The supply of zucchini is very elastic in the short run. Draw a diagram that shows how the equilibrium price and quantity change as demand changes due to a food safety scare affecting yellow squasharrow_forwardConsider the supply of coal. What would make the supply of coal more elastic? The supply of coal would become more elastic if A. The time horizon becomes longer. B. It becomes a larger portion of a consumer's budget C. more substitutes were available. D. it were more of a luxury.arrow_forwardAn increase in the supply of grain will reduce thetotal revenue grain producers receive ifa. the supply curve is inelastic.b. the supply curve is elastic.c. the demand curve is inelastic.d. the demand curve is elastic.arrow_forward
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- The price of apples increases by 7.2%, and the quantity supplied increases by 7.2%. What is the elasticity of supply and is it elastic, inelastic, or unit elastic? The quantity demanded of legos increases by 7.5% when the price decreases by 5%. What is the elasticity of demand and is it elastic, inelastic, or unit elastic?arrow_forwardAn economist observes the following: A price of the good increased a little and as a result total revenue of the firm increased. Which of the following could explain this observation A. Demand is perfectly elastic B. Demand is perfectly inelastic C. Demand is unit-elasticarrow_forwardWhich of the following would most likely be an example of elastic supply? Choose all that apply. A. luxury brand car B. gasoline C. a brand of jeans D. salt E. tap waterarrow_forward
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