Q1. Suppose that the demand curve for soybeans shifts such that the equilibrium price of soybeans decreases 58%. At the new equilibrium price, the quantity that soybean suppliers are willing to provide decreases by 3%. Which of the following most accurately describes the respective elasticity of supply and relative elasticity for soybeans? A) +0.05; inelastic. B) +19.33; inelastic. C) −0.05; elastic.
Q2. Which of the following most accurately describes elasticity of supply? Elasticity of supply is the percentage change in the quantity supplied divided by the percentage change in: A) price and it equals zero when supply is perfectly inelastic. B) price and it equals zero when supply is perfectly elastic. C) quantity demanded and it equals infinity when supply is perfectly inelastic.
Q3. Suppose that the demand curve for honey shifts such that the equilibrium price for a pound of honey increases from $7 to $9 per pound. At the new equilibrium, the quantity supplied increases from 500 pounds per month to 600 pounds per month, although the supply curve has not shifted. The elasticity of supply for honey is closest to: A) +0.91. B) +1.12. C) +0.73.
[此贴子已经被作者于2008-12-31 9:31:47编辑过] | 
发表于 2008-12-31 09:31
| 
