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ECON 1002: Microeconomics Final (A GUARANTEED)

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ECON 1002: Microeconomics Final (A GUARANTEED) Instruction: Please choose the most appropriate answer and follow the instructions on Ulearn to submit your answers. The answers on the problem set will NOT be graded. Good luck! Please choose the most appropriate answer to each question. 1. The main determinant of elasticity of supply is the: A. number of close substitutes for the product available to consumers. B. amount of time the producer has to adjust inputs in response to a price change. C. urgency of consumer wants for the product. D. number of uses for the product. Use the following table to answer question 2 2. Refer to the table. Over the $6-$4 price range, supply is: A. perfectly elastic. B. elastic. C. perfectly inelastic. D. inelastic. 3. The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by: A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied remains the same. D. 7 percent and quantity supplied rises by 5 percent. 4. The elasticity of supply of product X is unitary if the price of X rises by: A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent. 5. The supply of product X is perfectly inelastic if the price of X rises by: 2 A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent. 6. It takes a considerable amount of time to increase the production of pork. This implies that: A. a change in the demand for pork will not affect its price in the short run. B. the short-run supply curve for pork is less elastic than the long-run supply curve for pork. C. an increase in the demand for pork will elicit a larger supply response in the short run than in the long run. D. the long-run supply curve for pork is less elastic than the short-run supply curve for pork. 7. Suppose that the price of product X rises by 20 percent and the quantity supplied of X increases by 15 percent. The coefficient of price elasticity of supply for good X is: A. negative and therefore X is an inferior good. B. positive and therefore X is a normal good. C. less than 1 and therefore supply is inelastic. D. more than 1 and therefore supply is elastic. 8. If the supply of product X is perfectly elastic, an increase in the demand for it will increase: A. equilibrium quantity but reduce equilibrium price. B. equilibrium quantity, but equilibrium price will be unchanged. C. equilibrium price but reduce equilibrium quantity. D. equilibrium price, but equilibrium quantity will be unchanged. 9. A supply curve that is a vertical straight line indicates that: A. production costs for this product cannot be calculated. B. the relationship between price and quantity supplied is inverse. C. a change in price will have no effect on the quantity supplied. D. an unlimited amount of the product will be supplied at a constant price. 10. A supply curve that is parallel to the horizontal axis suggests that: A. the industry is organized monopolistically. B. the relationship between price and quantity supplied is inverse. C. a change in demand will change price in the same direction. D. a change in demand will change the equilibrium quantity but not price.

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