Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 5, Problem 4CQQ
To determine
The elasticity and market entry and exist.
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Students have asked these similar questions
The ability of firms to enter and exit a market over time means that,in the long run.a.the demand curve is more elastic.b.the demand curve is less elasticc.the supply curve is more elasticd.the supply curve is less elastic
An increase in the supply of a good will decrease the total revenue producers receive if
a.the demand curve is inelastic.
b the demand curve is elastic.
c.the supply curve is inelastic .
d.the supply curve is elastic.
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
Ā
Answers A - D
A.supply has increased and demand is very elastic.
Ā
B.supply has decreased and demand is very elastic.
Ā
C.supply has increased and demand is very inelastic.
Ā
D. demand has increased and supply is very inelastic.
Chapter 5 Solutions
Principles of Microeconomics (MindTap Course List)
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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- 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.arrow_forwardDuring 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 demandarrow_forwardAn increase in demand will have a ____ effect on price and a ____ effect on output when supply is relatively elastic.a. larger; smallerb. larger; largerc. smaller; largerd. smaller; smallerarrow_forward
- Choose the letter of the correct answer. Ā Ā Ā Ā ____1. It is designed to measure the response of quantity demanded when price changes. A. ElasticityĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā C. Elastic B. Elasticity of DemandĀ Ā Ā Ā D. Elasticity of Supply Ā Ā Ā Ā Ā ____2. It is the ratio or percentage in quantity to a percentage change in price along the given Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā supply curve. A. Elasticity of DemandĀ Ā Ā C. Price Elasticity of Supply B. Elasticity of SupplyĀ Ā Ā Ā Ā D. Price Elasticity of Demand Ā Ā Ā Ā Ā ____3. It focuses on the analysis of the behavior of individual economic agents. A. EconomicsĀ Ā Ā Ā Ā Ā Ā Ā Ā Ā Ā C. Macroeconomics B. Macro aspectĀ Ā Ā Ā Ā Ā Ā Ā Ā D. Microeconomics Ā Ā Ā Ā Ā Ā ____4. It refers to the number of goods and services that a consumer is willing able to purchase. A. Concept of SupplyĀ Ā Ā Ā Ā C. Elasticity of Demand B. Concept of DemandĀ Ā Ā D. Elasticity of Supply Ā Ā Ā Ā Ā Ā ____5. It refers to the number of goods and services that a firm is willing and able to offer for sale. A.ā¦arrow_forwardAn increase in the price of pure chocolate morsels from $2.25 to $2.45 causes suppliers of chocolate morsels to increase their quantity supplied from 125 bags per minute to 145 bags per minute. Supply is Select one: a. elastic and the price elasticity of supply is 1.74. b. elastic and the price elasticity of supply is 0.57. c. inelastic and the price elasticity of supply is 1.74. d. inelastic and the price elasticity of supply is 0.57.arrow_forwardB. 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_forward
- Consider the supply of coal. What would make the supply of coal moreā 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_forwardReferring to Figure 5-1, the demand curveĀ BĀ compared to the demand curveĀ CĀ is Ā Ā a. more elastic. Ā b. less elastic. Ā c. equal to zero. Ā d. less than 1. Ā e. varies from being more elastic to being less elastic.arrow_forwardDescribe how the elasticity of demand behaves in the long run?arrow_forward
- An increase in the supply of a good will decrease thetotal revenue producers receive ifa. the demand curve is inelastic.b. the demand curve is elastic.c. the supply curve is inelastic.d. the supply curve is elasticarrow_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_forwardPrice elasticity of supply is always positive except when supply is Ā a.Ā perfectly inelastic. Ā b.Ā relatively elastic. Ā c.Ā either relatively elastic or relatively inelastic. Ā d.Ā relatively inelastic.arrow_forward
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