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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