Quiz_5 - EC201 Introduction to Microeconomics(G.Lepori...

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EC201 Introduction to Microeconomics (G.Lepori) Spring 2007 1 Quiz 5 1) Suppose that an increase in the price of carrots from $1.30 to $1.80 per pound increases the quantity of carrots that carrot farmers produce from 1.2 million pounds to 1.6 million pounds. Using the midpoint method, what is the approximate value of the price elasticity of supply? a. -1.04 b. 0.67 c. 0.89 d. 1.13 ANS: C 2) A key determinant of the price elasticity of supply is a. the length of the time period. b. the definition of the market. c. the number of close substitutes for the good in question. d. the extent to which buyers alter their quantities demanded in response to changes in their incomes. ANS: A 3) If a 30 percent change in price causes a 15 percent change in quantity supplied, then the price elasticity of supply is a. 0.5 and supply is elastic. b. 0.5 and supply is inelastic. c. 2 and supply is inelastic. d.
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Quiz_5 - EC201 Introduction to Microeconomics(G.Lepori...

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