4B Web Quiz.docx - (4B Web Quiz Which of the following most...

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(4B Web Quiz) Which of the following most closely relates to Price Elasticity of Supply? (When you think of elasticity, you should always think of what?) Ans: HOW MUCH 2) Which of the following best defines price elasticity of supply? Ans: 3) Use the midpoint formula to calculate the coefficient of price elasticity of supply (Es) for a price change from $26 to$30. Ans: Es=2
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4) If Es=2, what would happen to quantity supplied if the price goes up by 10%? Ans: Quantity supplied would go up by 20% 5) If Es=0.5, what would happen to quantity supplied if the price goes up by 10%? Ans: Quantity supplied would go up by 5% 6) If supply is perfectly inelastic and demand increases, what will happen to price and quantity? Ans: Price increases and quantity stays the same. 7) If supply is perfectly elastic and demand increases, what will happen to price and quantity? Ans: Price stays the same and quantity increases.
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8) Which of the following is NOT one of the 4 determinants of price elasticity of supply?
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