Biology Forums - Study Force

Both income elasticity of demand and cross-price elasticity of demand coefficients can take on negative, zero, or positive values.
 a. True
  b. False

QUESTION 2

The most important determinant of price elasticity of supply is
 a. price elasticity of demand
  b. technological conditions such as how rapidly costs increase when a firm increases its output
  c. whether the production process relies heavily on capital or on labor
  d. the number and closeness of available substitutes
  e. whether the product is a normal good or an inferior good

QUESTION 3

Price elasticity of demand and price elasticity of supply are both influenced by
 a. the availability of close substitutes for the product
  b. the proportion of the consumer's budget spend on the product
  c. the length of the adjustment period considered
  d. technological conditions such as the additional costs of increasing production
  e. none of the above

QUESTION 4

The price elasticity of today's supply curve of classrooms on campus is likely to
 a. be greater than 1
  b. be less than 1
  c. be equal to 1
  d. approach zero
  e. be infinity

QUESTION 5

As producers have more time to adjust to a price change, price elasticity of supply
 a. increases
  b. decreases
  c. remains the same
  d. rises and then falls
  e. falls and then rises

QUESTION 6

The supply curve will be more elastic if
 a. the good has few substitutes
  b. the time the producer has to adjust is long
  c. the time frame for adjusting to price changes is short
  d. demand is elastic
  e. demand is inelastic

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:white_check_mark: Correct!