1.You are informed that the demand for a good has increased and the supply of that good has also increased.

You know that the market quantity must have ____________, while the market price could have

____________ if the change in demand was ____________ than the change in supply.

2.The market for toys is currently in equilibrium. If the demand for toys decreases and the supply of toys

decreases, what will happen to the market price and quantity of toys?

3.The price elasticity of supply of good X is

4.Suppose the price of eggplant decreases by 4% and eggplant producers reduce the quantity of eggplant

supplied by 20%. The price elasticity of supply is equal to

5.If we know that the price elasticity of supply of eggnog is 3 and that the price of eggnog has doubled, we predict that

6.In the long run, the price elasticity of supply is ___________ the short-run price elasticity of supply because producers have __________ time to adjust to changes in the price.

7.Jason is a seller of Klonks. He has seen the price of a Klonk rise from $10 to $14, and he has responded by increasing his daily production from 100 units to 140 units. Using the midpoint formula, compute Jason's price elasticity of supply between these two prices.

108.Which of the following choices is an accurate formula for the absolute value of the price elasticity of

demand (Ed)?

(A) Ed = (%) (%)

(B) Ed = (%) (%)

(C) Ed = (%) (%)

(D) Ed = (%) (%)

(E) Ed = (%) (%)

109.If demand for a product is said to be inelastic, it must be the case that the absolute value of the price elasticity of demand (Ed) is

10.Suppose the price elasticity of demand for apples is equal to .75. If the price of apples rises by 10%, we expect a ___________ in apple consumption.