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1. The price elasticity of supply measures how much
a. the quantity supplied responds to changes in input prices.
b. the quantity supplied responds to changes in the price of the good.
c. the price of the good responds to changes in supply.
d. sellers respond to changes in technology.
ANSWER: b
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Knowledge
CUSTOM ID: 001.05.2 - MC - MANK08
6. A key determinant of the price elasticity of supply is the time period under consideration. Which of the following
statements best explains this fact?
a. Supply curves are steeper over long periods of time than over short periods of time.
b. Buyers of goods tend to be more responsive to price changes over long periods of time than over short periods
of time.
c. The number of firms in a market tends to be more variable over long periods of time than over short periods of
time.
d. Firms prefer to change their prices in the short run rather than in the long run.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 006.05.2 - MC - MANK08
10. If the price elasticity of supply for wheat is less than 1, then the supply of wheat is
a. inelastic.
b. elastic.
c. unit elastic.
d. quite sensitive to changes in income.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 010.05.2 - MC - MANK08
14. Some firms eventually experience problems with their capacity to produce output as their output levels increase. For
these firms,
a. market power is substantial.
b. supply is perfectly inelastic.
c. supply is more elastic at low levels of output and less elastic at high levels of output.
d. supply is less elastic at low levels of output and more elastic at high levels of output.
ANSWER: c
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 014.05.2 - MC - MANK08
17. Suppose that two supply curves pass through the same point. One is steep, and the other is flat. Which of the following
statements is correct?
a. The flatter supply curve represents a supply that is inelastic relative to the supply represented by the steeper
supply curve.
b. The steeper supply curve represents a supply that is inelastic relative to the supply represented by the flatter
supply curve.
c. Given two prices with which to calculate the price elasticity of supply, that elasticity would be the same for
both curves.
d. A decrease in demand will increase total revenue if the steeper supply curve is relevant, while a decrease in
demand will decrease total revenue if the flatter supply cure is relevant.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 017.05.2 - MC - MANK08
21. If the price elasticity of supply is 1.5, and a price increase led to a 1.8% increase in quantity supplied, then the price
increase is about
a. 0.67%.
b. 0.83%.
c. 1.20%.
d. 2.70%.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
22. If the price elasticity of supply is 0.4, and a price increase led to a 5% increase in quantity supplied, then the price
increase is about
a. 0.25%.
b. 1.2%.
c. 2%.
d. 12.5%.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 022.05.2 - MC - MANK08
23. If the price elasticity of supply is 1.5, and a price increase led to a 3% increase in quantity supplied, then the price
increase is about
a. 0.2%.
b. 0.5%.
c. 2.0%.
d. 4.5%.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 023.05.2 - MC - MANK08
24. If the price elasticity of supply is 1.2, and a price increase led to a 5% increase in quantity supplied, then the price
increase is about
a. 0.24%.
b. 4.2%.
c. 6%.
d. 6.2%.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 024.05.2 - MC - MANK08
25. If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would
Copyright Cengage Learning. Powered by Cognero. Page 7
a. increase by 4.2%.
b. increase by 6%.
c. decrease by 4.2%.
d. decrease by 6%.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 025.05.2 - MC - MANK08
26. If the price elasticity of supply is 0.8, and price increased by 5%, quantity supplied would
a. increase by 4%.
b. increase by 6.25%.
c. decrease by 4%.
d. decrease by 6.25%.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 026.05.2 - MC - MANK08
27. If a 25% change in price results in a 40% change in quantity supplied, then the price elasticity of supply is about
a. 0.63, and supply is elastic.
b. 0.63, and supply is inelastic.
c. 1.60, and supply is elastic.
d. 1.60, and supply is inelastic.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 027.05.2 - MC - MANK08
28. If a 40% change in price results in a 25% change in quantity supplied, then the price elasticity of supply is about
a. 0.63, and supply is elastic.
b. 0.63, and supply is inelastic.
c. 1.60, and supply is elastic.
d. 1.60, and supply is inelastic.
ANSWER: b
DIFFICULTY: Moderate
29. If a 15% change in price results in a 20% change in quantity supplied, then the price elasticity of supply is about
a. 1.33, and supply is elastic.
b. 1.33, and supply is inelastic.
c. 0.75, and supply is elastic.
d. 0.75, and supply is inelastic.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 029.05.2 - MC - MANK08
30. If a 20% change in price results in a 15% change in quantity supplied, then the price elasticity of supply is about
a. 1.33, and supply is elastic.
b. 1.33, and supply is inelastic.
c. 0.75, and supply is elastic.
d. 0.75, and supply is inelastic.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 030.05.2 - MC - MANK08
31. If a 30 percent change in price causes a 15 percent change in quantity supplied, then the price elasticity of supply is
about
a. 0.5, and supply is elastic.
b. 0.5, and supply is inelastic.
c. 2, and supply is inelastic.
d. 2, and supply is elastic.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
Copyright Cengage Learning. Powered by Cognero. Page 9
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 031.05.2 - MC - MANK08
32. Suppose the price elasticity of supply for cheese is 0.6 in the short run and 1.4 in the long run. If an increase in the
demand for cheese causes the price of cheese to increase by 15%, then the quantity supplied of cheese will increase by
a. 0.4% in the short run and 4.6% in the long run.
b. 1.7% in the short run and 0.7% in the long run.
c. 9% in the short run and 21% in the long run.
d. 25% in the short run and 10.7% in the long run.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 032.05.2 - MC - MANK08
33. Suppose the price elasticity of supply for soccer balls is 0.3 in the short run and 1.2 in the long run. If an increase in
the demand for soccer balls causes the price of soccer balls to increase by 20%, then the quantity supplied of soccer balls
will increase by about
a. 0.67% in the short run and 0.17% in the long run.
b. 3% in the short run and 1.2% in the long run.
c. 6% in the short run and 24% in the long run.
d. 66.7% in the short run and 16.7% in the long run.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 033.05.2 - MC - MANK08
34. Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run. If an increase in the
demand for minivans causes the price of minivans to increase by 5%, then the quantity supplied of minivans will increase
by about
a. 1.5% in the short run and 6% in the long run.
b. 6% in the short run and 1.5% in the long run.
c. 16.7% in the short run and 4.2% in the long run.
d. 4.2% in the short run and 16.7% in the long run.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 034.05.2 - MC - MANK08
36. In which of the following situations would supply be the most elastic?
a. An auto parts manufacturer is operating at capacity.
b. A real estate developer in Boston is looking to build condos on the waterfront.
c. A furniture manufacturer is operating its factory 8 hours per day.
d. A hotel has all of its rooms booked for each night of the next 3 months.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 036.05.2 - MC - MANK08
Scenario 5-3
Suppose that the supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered
to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both
goods by 10%.
37. Refer to Scenario 5-3. The price elasticity of supply for aged cheddar cheese could be
a. -1.
b. 0.
c. 0.5.
d. 1.5.
ANSWER: c
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 037.05.2 - MC - MANK08
38. Refer to Scenario 5-3. The price elasticity of supply for bread could be
a. -1.
b. 0.
Copyright Cengage Learning. Powered by Cognero. Page 11
c. 0.5.
d. 1.5.
ANSWER: d
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 038.05.2 - MC - MANK08
Table 5-9
39. Refer to Table 5-9. Which of the three supply curves represents the least elastic supply?
a. supply curve A
b. supply curve B
c. supply curve C
d. There is no difference in the elasticity of the three supply curves.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 039.05.2 - MC - MANK08
40. Refer to Table 5-9. Which of the three supply curves represents the most elastic supply?
a. supply curve A
b. supply curve B
c. supply curve C
d. There is no difference in the elasticity of the three supply curves.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 040.05.2 - MC - MANK08
41. Refer to Table 5-9. Along which of the supply curves does quantity supplied move proportionately more than the
price?
a. along supply curve B only
b. along supply curves B and C
Table 5-10
42. Refer to Table 5-10. Using the midpoint method, which of the three supply curves has the most inelastic price
elasticity of supply?
a. Supply curve X
b. Supply curve Y
c. Supply curve Z
d. There is no difference in the elasticities of the three supply curves.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 042.05.2 - MC - MANK08
43. Refer to Table 5-10. Using the midpoint method, which of the three supply curves has the most elastic price elasticity
of supply?
a. Supply curve X
b. Supply curve Y
c. Supply curve Z
d. There is no difference in the elasticity of the three supply curves.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 043.05.2 - MC - MANK08
44. A manufacturer produces 400 units when the market price is $10 per unit and produces 600 units when the market
Copyright Cengage Learning. Powered by Cognero. Page 13
price is $12 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 0.45.
b. 2.0.
c. 2.2.
d. 200.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 044.05.2 - MC - MANK08
45. At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee
shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is
about
a. 0.45
b. 0.90
c. 1.11
d. 2.20
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 045.05.2 - MC - MANK08
46. At a price of $1.20, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.40, the coffee
shop would be willing to supply 150 cinnamon rolls per day. Using the midpoint method, the price elasticity of supply is
about
a. 0.15
b. 0.375
c. 2.5
d. 2.60
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 046.05.2 - MC - MANK08
47. On a certain supply curve, one point is (quantity supplied = 200, price = $4.00) and another point is (quantity supplied
= 250, price = $4.50). Using the midpoint method, the price elasticity of supply is about
Copyright Cengage Learning. Powered by Cognero. Page 14
a. 0.22.
b. 0.53.
c. 1.00.
d. 1.89.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 047.05.2 - MC - MANK08
48. On a certain supply curve, one point is (quantity supplied = 200, price = $2.00) and another point is (quantity supplied
= 250, price = $2.50). Using the midpoint method, the price elasticity of supply is about
a. 0.2.
b. 0.5.
c. 1.0.
d. 2.5.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 048.05.2 - MC - MANK08
49. Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20
percent when the market price of candy increases from $0.50 to $0.60, then supply is
a. inelastic, since the price elasticity of supply is equal to .91.
b. inelastic, since the price elasticity of supply is equal to 1.1.
c. elastic, since the price elasticity of supply is equal to 0.91.
d. elastic, since the price elasticity of supply is equal to 1.1.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 049.05.2 - MC - MANK08
50. Holding all other factors constant and using the midpoint method, if a tractor manufacturer increases production from
80 to 100 units when price increases by 15 percent, then supply is
a. inelastic, since the price elasticity of supply is equal to 0.68.
b. inelastic, since the price elasticity of supply is equal to 1.48.
Copyright Cengage Learning. Powered by Cognero. Page 15
c. elastic, since the price elasticity of supply is equal to 0.68.
d. elastic, since the price elasticity of supply is equal to 1.48.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 050.05.2 - MC - MANK08
51. Suppose that an increase in the price of melons from $1.30 to $1.80 per pound increases the quantity of melons that
melon 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. 0.67
b. 0.89
c. 1.00
d. 1.13
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 051.05.2 - MC - MANK08
52. An increase in the price of cheese crackers from $2.25 to $2.45 per box causes suppliers of cheese crackers to increase
their quantity supplied from 125 boxes per minute to 145 boxes per minute. Using the midpoint method, supply is
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.
ANSWER: a
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 052.05.2 - MC - MANK08
53. A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would
be willing to supply 1,100 bagels. Using the midpoint method, the price elasticity of supply for bagels is about
a. 0.62.
b. 0.77.
c. 1.24.
54. A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t-shirt
maker would be willing to supply 100 t-shirts. Using the midpoint method, the price elasticity of supply for t-shirts is
about
a. 0.37, and supply is elastic.
b. 0.37, and supply is inelastic.
c. 2.71, and supply is elastic.
d. 2.71, and supply is inelastic.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 054.05.2 - MC - MANK08
55. In January the price of dark chocolate candy bars was $2.00, and Willy’s Chocolate Factory produced 80 pounds. In
February the price of dark chocolate candy bars was $2.50, and Willy’s produced 110 pounds. In March the price of dark
chocolate candy bars was $3.00, and Willy’s produced 140 pounds. The price elasticity of supply of Willy’s dark
chocolate candy bars was about
a. 0.70 when the price increased from $2.00 to $2.50 and 0.76 when the price increased from $2.50 to $3.00.
b. 0.88 when the price increased from $2.00 to $2.50 and 1.08 when the price increased from $2.50 to $3.00.
c. 1.42 when the price increased from $2.00 to $2.50 and 1.32 when the price increased from $2.50 to $3.00.
d. 1.50 when the price increased from $2.00 to $2.50 and 1.18 when the price increased from $2.50 to $3.00.
ANSWER: c
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 055.05.2 - MC - MANK08
56. In January the price of widgets was $1.00, and Wendy's Widgets produced 80 widgets. In February the price of
widgets was $1.50, and Wendy's Widgets produced 110 widgets. In March the price of widgets was $2.00, and Wendy's
Widgets produced 140 widgets. The price elasticity of supply of Wendy's Widgets was about
a. 0.79 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.
b. 1.27 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
Copyright Cengage Learning. Powered by Cognero. Page 17
c. 0.79 when the price increased from $1.00 to $1.50 and 1.19 when the price increased from $1.50 to $2.00.
d. 1.27 when the price increased from $1.00 to $1.50 and 0.84 when the price increased from $1.50 to $2.00.
ANSWER: a
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 056.05.2 - MC - MANK08
57. At price of $1.20, a local pencil manufacturer is willing to supply 150 boxes per day. At a price of $1.40, the
manufacturer is willing to supply 170 boxes per day. Using the midpoint method, the price elasticity of supply is about
a. 2.0.
b. 1.23.
c. 1.00.
d. 0.81.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 057.05.2 - MC - MANK08
58. At price of $1.30 per pound, a local apple orchard is willing to supply 150 pounds of apples per day. At a price of
$1.50 per pound, the orchard is willing to supply 170 pounds of apples per day. Using the midpoint method, the price
elasticity of supply is about
a. 1.14.
b. 1.00.
c. 0.875.
d. 0.50.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 058.05.2 - MC - MANK08
59. At price of $1.25, a paper manufacturer is willing to supply 150 spiral notebooks per day. At a price of $1.50, the
paper manufacturer is willing to supply 175 spiral notebooks per day. Using the midpoint method, the price elasticity of
supply is about
a. 1.18.
b. 1.00.
c. 0.85.
Copyright Cengage Learning. Powered by Cognero. Page 18
d. 0.25.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 059.05.2 - MC - MANK08
Figure 5-14
60. Refer to Figure 5-14. Over which range is the supply curve in this figure the most elastic?
a. $16 to $40
b. $40 to $100
c. $100 to $220
d. $220 to $430
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.273 - Given data on the price elasticity of supply, identify a region of
the supply curve as elastic, inelastic, or unit elastic.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 060.05.2 - MC - MANK08
61. Refer to Figure 5-14. Over which range is the supply curve in this figure the least elastic?
a. $16 to $40
b. $40 to $100
c. $100 to $220
d. $220 to $430
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.273 - Given data on the price elasticity of supply, identify a region of
the supply curve as elastic, inelastic, or unit elastic.
Copyright Cengage Learning. Powered by Cognero. Page 19
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 061.05.2 - MC - MANK08
62. Refer to Figure 5-14. Using the midpoint method, what is the price elasticity of supply between $16 and $40?
a. 0.125
b. 0.86
c. 1.0
d. 2.5
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 062.05.2 - MC - MANK08
63. Refer to Figure 5-14. Using the midpoint method, what is the price elasticity of supply between $100 and $220?
a. 0.58
b. 0.67
c. 1.00
d. 1.73
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 063.05.2 - MC - MANK08
Figure 5-15
65. Refer to Figure 5-15. Along which of these segments of the supply curve is supply most elastic?
a. AB
b. CD
c. DH
d. GH
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.273 - Given data on the price elasticity of supply, identify a region of
the supply curve as elastic, inelastic, or unit elastic.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 065.05.2 - MC - MANK08
66. Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points A and B?
Copyright Cengage Learning. Powered by Cognero. Page 21
a. 2.33
b. 1.0
c. 0.43
d. 0.1
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 066.05.2 - MC - MANK08
67. Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points B and C?
a. 1.67
b. 1.19
c. 0.84
d. 0.61
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 067.05.2 - MC - MANK08
68. Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points C and D?
a. 0.21
b. 0.29
c. 0.73
d. 1.36
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 068.05.2 - MC - MANK08
69. Refer to Figure 5-15. Using the midpoint method, what is the price elasticity of supply between points D and G?
a. 1.89
b. 1.26
c. 0.53
d. 0.34
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 22
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 069.05.2 - MC - MANK08
Figure 5-16
70. Refer to Figure 5-16. Using the midpoint method, what is the price elasticity of supply between $4 and $6?
a. 0.75
b. 1.00
c. 1.20
d. 1.25
ANSWER: d
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 070.05.2 - MC - MANK08
71. Refer to Figure 5-16. Using the midpoint method, what is the price elasticity of supply between $6 and $8?
a. 0.86
b. 1.00
c. 1.17
d. 1.25
ANSWER: c
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
Figure 5-17
72. Refer to Figure 5-17. Using the midpoint method, what is the price elasticity of supply between point A and point B?
a. 0.4
b. 0.6
c. 1.67
d. 2.16
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 072.05.2 - MC - MANK08
73. Refer to Figure 5-17. Using the midpoint method, what is the price elasticity of supply between point B and point C?
a. 1.44
b. 1.29
c. 0.96
d. 0.69
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 073.05.2 - MC - MANK08
Copyright Cengage Learning. Powered by Cognero. Page 24
74. Refer to Figure 5-17. If, holding the supply curve fixed, there were an increase in demand that caused the equilibrium
price to increase from $6 to $7, then sellers’ total revenue would
a. increase.
b. decrease.
c. remain unchanged.
d. The effect on total revenue cannot be determined from the given information.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 074.05.2 - MC - MANK08
Figure 5-18
75. Refer to Figure 5-18. Using the midpoint method, what is the price elasticity of supply between $4 and $5?
a. 0.50
b. 0.56
c. 1.80
d. 2.00
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 075.05.2 - MC - MANK08
76. Refer to Figure 5-18. Using the midpoint method, what is the price elasticity of supply between $5 and $6?
a. 0.60
b. 0.64
c. 1.57
d. 1.67
Copyright Cengage Learning. Powered by Cognero. Page 25
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 076.05.2 - MC - MANK08
77. If sellers respond to very small changes in price by adjusting their quantity supplied by extremely large amounts, the
price elasticity of supply approaches
a. zero, and the supply curve is horizontal.
b. zero, and the supply curve is vertical.
c. infinity, and the supply curve is horizontal.
d. infinity, and the supply curve is vertical.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 077.05.2 - MC - MANK08
78. Which of the following statements is valid when supply is perfectly elastic at a price of $4?
a. The elasticity of supply approaches infinity.
b. The supply curve is vertical.
c. At a price below $4, quantity supplied is infinite.
d. At a price above $4, quantity supplied is zero.
ANSWER: a
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 078.05.2 - MC - MANK08
79. Which of the following statements is not valid when supply is perfectly elastic?
a. The elasticity of supply approaches infinity.
b. The supply curve is horizontal.
c. Very small changes in price lead to very large changes in quantity supplied.
d. The time period under consideration is more likely a short period rather than a long period.
ANSWER: d
DIFFICULTY: Challenging
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 26
CUSTOM ID: 079.05.2 - MC - MANK08
80. When supply is perfectly elastic, the value of the price elasticity of supply is
a. 0.
b. 1.
c. greater than 0 and less than 1.
d. infinity.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 080.05.2 - MC - MANK08
81. As the price elasticity of supply approaches infinity, very small changes in price lead to
a. very large changes in quantity supplied.
b. very small changes in quantity supplied.
c. no change in quantity supplied.
d. None of the above is correct.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 081.05.2 - MC - MANK08
82. If the price elasticity of supply for a good is equal to infinity, then the
a. supply curve is vertical.
b. supply curve is horizontal.
c. supply curve also has a slope equal to infinity.
d. quantity supplied is constant regardless of the price.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 082.05.2 - MC - MANK08
83. A manufacturer produces 1,000 units, regardless of the market price. For this firm, the price elasticity of supply is
a. infinity.
b. zero.
c. one.
d. negative one.
84. If sellers do not adjust their quantity supplied at all in response to a change in price, the price elasticity of supply is
a. zero, and the supply curve is horizontal.
b. zero, and the supply curve is vertical.
c. infinity, and the supply curve is horizontal.
d. infinity, and the supply curve is vertical.
ANSWER: b
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 084.05.2 - MC - MANK08
85. Which of the following statements is valid when the market supply curve is vertical?
a. Market quantity supplied does not change when the price changes.
b. Supply is perfectly elastic.
c. An increase in market demand will increase the equilibrium quantity.
d. An increase in market demand will not increase the equilibrium price.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 085.05.2 - MC - MANK08
86. Which of the following statements is not valid when the market supply curve is vertical?
a. Market quantity supplied does not change when the price changes.
b. Supply is perfectly inelastic.
c. An increase in market demand will increase the equilibrium quantity.
d. An increase in market demand will increase the equilibrium price.
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 086.05.2 - MC - MANK08
88. If sellers do not adjust their quantities supplied at all in response to a change in price,
a. advances in technology must be prevalent.
b. the time period under consideration must be very long.
c. supply is perfectly elastic.
d. supply is perfectly inelastic.
ANSWER: d
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 088.05.2 - MC - MANK08
90. Which of the following is an illustration of the market for original paintings by deceased artist Vincent Van Gogh?
b.
c.
d.
a. A
b. B
c. C
d. D
ANSWER: c
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Application
CUSTOM ID: 090.05.2 - MC - MANK08
Figure 5-19
Figure 5-20
94. Refer to Figure 5-20. Which supply curve represents perfectly inelastic supply?
a. S1
b. S2
c. S3
d. None of the supply curves is perfectly inelastic.
ANSWER: a
DIFFICULTY: Easy
LEARNING OBJECTIVES: ECON.MANK.090 - Evaluate the price elasticity of supply.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Comprehension
CUSTOM ID: 094.05.2 - MC - MANK08
95. A candle manufacturer produces 4,000 units when the market price is $11 per unit and produces 6,000 units when the
market price is $13 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 6.
b. 2.4.
c. 0.4.
d. 0.67.
ANSWER: b
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DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 095.05.2 - MC - MANK08
96. A tax accounting firm produces 500 tax returns units when the market price is $150 per return and produces 700 tax
returns when the market price is $170 per tax return. Using the midpoint method, for this range of prices, the price
elasticity of supply is about
a. 2.67.
b. 0.67.
c. 0.4.
d. 0.125.
ANSWER: a
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ECON.MANK.265 - Given data on supply, calculate the price elasticity of supply
using the midpoint method.
TOPICS: Elasticity
Price elasticity of supply
KEYWORDS: BLOOM'S: Analysis
CUSTOM ID: 096.05.2 - MC - MANK08
FOOTNOTES:
[5] Speech of M. Guizot in the chambre des députés.
[6] The general feeling of disgust and bitterness with which all
travellers, who are natives of Great Britain or of the United States,
speak of the vexations they are compelled to undergo from the
formalities and exactions to which they are subjected in obtaining
signatures to passports on the continent, need not be dwelt upon.
Much ill blood, more delay, not to speak of expense, are created
by the insolence and legalized robbery of official persons, into
whose hands the defenceless traveller falls in the fulfilment of
these formalities. Passports are the alpha and omega of a man’s
trouble on a continental journey.
In some particular cases, it may even be affirmed that the
exercise of consular authority in reference to passports amounts
to actual illegality. Captain B., an Englishman, in the winter 1836-
7, was about to leave the Sardinian States, and made his
arrangements accordingly, but neglected to settle a debt which he
had contracted at a shop kept also by an Englishman. The
creditor immediately went to the English vice-consul, and
requested he would not deliver the captain’s passport until the bill
was paid: and it was accordingly stopped, although Captain B.
had taken his passage by the steamboat. This case is by no
means singular; for many English consuls consider themselves
justified in acting in the same way under similar circumstances.
Now, the question at issue is—has a consul a right to do this? The
answer will be found in the fact that no such right is known to the
English constitution, and that, therefore, the conduct of the consul
is unconstitutional and illegal. The British government has no
power over the movements of an individual, except under the
warrant of a magistrate. English legislation knows nothing of
passports, except as a usage resorted to by foreign governments,
to which British subjects must submit while they are within the
range of their operation. But the consul, as a British officer, cannot
recognize a passport otherwise than as a formality exacted by the
government of the country in which he resides; he cannot, without
laying himself open to a serious responsibility (which it is a great
pity he should not be made to discharge) employ a passport as
an instrument for the detention or arrest (for such it amounts to, in
fact) of any free-born subject of Great Britain. Even the British
consul at Havre did not feel himself authorised to stop Mr.
Papineau’s passport on his way to Paris, although Mr. Papineau
was denounced as a traitor and an outlaw by the British
government.
Captain B.’s creditor ought to have applied to the Piedmontese
police, and not to the English vice-consul, who was a native of the
place. And this is one of the crying evils of our consular system.
Instead of appointing meritorious half-pay officers, or other
deserving gentlemen, born in Great Britain, to such offices, we
frequently bestow them upon inhabitants of the place, who are
bound by religious, social, and domestic ties, to prefer the
interests of the country in which they live to those of the country
which they represent, and who hold in much greater fear and
respect the local authorities of the neighbourhood than the distant
authority to which they owe no allegiance beyond that of official
forms, which they can in most cases violate or misrepresent with
impunity. Our consular system is open to many objections, but
this is one of the most palpable and disgraceful.
[7] The defection of the Ottoman fleet to Mahomet Ali and the
treachery of the Captain Pasha furnish a remarkable illustration.
One cannot but be struck with the extraordinary fact of a whole
crew’s not having, in hint or word, given the slightest intimation to
Captain Walker of what was going on. Slight as may have been
his knowledge of the Turkish language, yet one would have
supposed some expression let fall must have betrayed their
intention. He must have had servants likewise, who, mixing with
the ship’s company and with the servants of the officers, might
have heard some allusion dropped as to the council held to
deliberate on so important a measure. But the newspapers said
he was ignorant of the plot up to the last moment: and from my
own experience I can believe such a thing very readily.
chapter iii.
Lady Hester’s mode of life—Boghoz Bey—The insurrection of the Druzes—
Character of the Emir Beshýr—Ibrahim Pasha—Lady Charlotte Bury—
Preparations for the reception of Prince Pückler Muskau.
FOOTNOTES:
[8] A collection of the Arabic letters which she had received from
people of all classes and on all subjects would have been very
valuable to the Oriental scholar: but these were also burned at
various intervals.
[9] “There is perhaps not one mother in ten thousand, who, before
becoming such, has ever inquired into the nature and wants of
the newly-born infant, or knows on what principle its treatment
ought to be directed.”—Physiology of Digestion, by Andrew
Combe, M.D., p. 232, 2nd edition.
[10] It may be mentioned that Suliman Pasha is considered as the
most efficient general in Syria, and, in difficult situations, he is
supposed to direct the movements of the army. Ibrahim Pasha
passes for being jealous of him, but unable to do without him.
[11] On returning to Europe, I discovered that this novel, although
edited by Lady C. Bury, was the production of another lady, Mrs.
C. Gore. Nevertheless, the observations made on it and on its
supposed author are retained, in the hope that each of these
highly-gifted persons, as well as the reader, will be amused in
hearing Lady Hester’s comments, made in a different spirit from
that which animates a critic in our periodical reviews.
[12] I have often thought it must have been Mr. Roberts, who, in
his “Views of Syria,” has given such a beautiful drawing of Lady
Hester’s house, notwithstanding that the surrounding scenery is
somewhat embellished by the painter’s imagination; there being
no river at the foot of the mount, but only a watercourse always
dry, excepting after heavy rains.