A perfectly elastic supply curve
a. has no relevance, since real-world supply curves are never perfectly elastic
b. is a horizontal straight line
c. is a vertical straight line
d. is an upward-sloping straight line
e. is not a straight line
QUESTION 2Today's supply curve of dorm rooms on campus is likely to be
a. downward sloping
b. relatively flat
c. vertical
d. horizontal
e. price elastic
QUESTION 3If output in the calculator market increases by 5 percent when the price increases by more than 5 percent, then
a. supply is inelastic
b. supply is elastic
c. a small increase in price will cause a leftward shift of the supply curve
d. a small increase in price will cause a rightward shift of the supply curve
e. a large increase in price will cause a large shift of the supply curve
QUESTION 4If the price of a good doubles and quantity supplied triples, then
a. demand is elastic
b. demand is inelastic
c. supply is inelastic
d. supply is elastic
e. there is insufficient information to reach any conclusion about the price elasticity of supply
QUESTION 5The supply of paintings by Van Gogh is most likely to be
a. of infinite elasticity because supply is limited
b. of high elasticity because supply is limited
c. elastic because the paintings are luxury goods
d. inelastic because supply is limited
e. unit elastic
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