m j 4. (02.02MB) Which of the following changes would cause movement along a product's supply curve? (2 points) 0 A change in production costs 0 An increase in demand 0 Atax on the product 0 A change in the product's price 0 An increase in quantity-demanded E j 5. (02.02MB) Consider the following supply schedules for Kelby, Jack, and Kate, who are the only suppliers in the market for Good Y: Kelby Jack Kate Price Units Produced $5 12 8 4 $4 11 6 3 If the market sees 15 units of Good Y exchanged, what is the likeliest price in the market? (2 points) 6. (02.02 MC) Which of the following would lead to a shift to the right of the supply curve of a specific product? (2 points) An increase in the price of the product O A decrease in the price of the product O The addition of a per-unit tax on a product O An increase in technological improvements A decrease in the number of suppliers supplying the same product 7. (02.03 MC) Sprockets are known to have relatively elastic demand when their price increases from $1 to $2. What must be true of the change in quantity demanded over this price range? (2 points) It decreases by more than 100 percent. O It increases by more than 100 percent. It decreases by less than 100 percent. O It increases by less than 100 percent. It decreases by an indeterminate amount.Q 9. (02.04 MC) If a good's price elasticity of supply is inelastic and its quantity supplied increases by 5%, its (2 points) price must have increased by more than 5% supply must have increased by 4% price must have increased by 4% quantity supplied must have increased by 5 units price must have decreased by more than 5% 10. (02.04 MC) Assume a new technology is created that causes the cost of metal to decrease as the quantity increases. If metal is a major input in the production of automobiles, how is the change in economies of scale for metal from the new technology guaranteed to affect the elasticity of supply for automobiles? The elasticity of supply for automobiles will become unit elastic. O The elasticity of supply for automobiles will become more elastic. The elasticity of supply for automobiles will become more inelastic. The elasticity of supply for automobiles will become perfectly elastic. The elasticity of supply for automobiles will become perfectly inelastic.D ] 11.03105 MC) If the income elasticity of demand for a good is *2. then (2 points) 0 quantity demanded and income decrease by 2 percent O quantity demanded increases by 2 percent while income increases by 1 percent O quantity demanded decreases by 2 percent while income increases by 2 percent 0 quantity demanded increases by 1 percent while income decreases by 2 percent 0 quantity demanded decreases by 2 percent while income increases by 1 percent D j 12. (02.05 HC) Given that the crossiprice elasticity of goods Bee and Zee is ,20 and the quantity of Bee decreases by 40 percent. which ofthe following statements is correct? (2 points) O They are substitutes. and the price of Zee goes up by 2 percent. 0 They are substitutes. and the price of Zee goes down by 2 percent. 0 They are complements. and the price of Zee goes up by 2 percent. 0 They are complements. and the price of Zee goes down by 2 percent. 0 They are complements. and the price of Zee goes down by 8 percent. D ] 13.(02.06MC) If a consumer believes that businesses are charging a price well below equilibrium for a good he wants. what would be a rational response? Assume the good cannot be resold. (2 points) 0 Not purchase any units to wait until the surplus leads to a lower price 0 Purchase more units than he wants to take advantage of the low price 0 Purchase his desired units quickly before there is a shortage O Purchase the closest substitute for that good 0 Purchase a complement to that good