MCQ - 第二单元 - 2. Elasticity

Question 1

Q1. In response to an increase in price from $5 per kilo to $6 per kilo, a farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply?

1. 0.8
2. 0.9
3. 1.2
4. 1.25

Answer 1

d

Question 2

Q2 The price elasticity of supply of good X is 0.1. The good suddenly becomes very fashionable, leading to a large increase in demand. What would be the likely outcome of this change in the short term?

1. a large increase in output
2. a large increase in price
3. a small increase in price
4. a small increase in revenue

Answer 2

b

Question 3

Q3 The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread?

1. –0.4
2. –0.8
3. –1.25
4. –2.0

Answer 3

b

Question 4

Q4 Lithium is an essential metal for the production of electric cars. Following a 10% increase in the price of lithium, supplies increase by 15%. This led to a 5% increase in the price of electric cars. What is the price elasticity of supply (PES,) for lithium?

1. 0.33
2. 0.66
3. 1.50
4. 2.0

Answer 4

C

Question 5

Q5 The price elasticity of supply of a good is 2. The price of the good then falls by 10%. What is the effect on quantity supplied?

1. It falls by 0.2%.
2. It falls by 20%.
3. It increases by 0.2%.
4. It increases by 20%.

Answer 5

B

Question 6

Q6

Answer 6

D

Question 7

Q7

Answer 7

D