17) The elasticity of supply of product X is unitary if the price of X rises by:

Question

17) The elasticity of supply of product X is unitary if the price of X rises by: 17) A) 10 percent and quantity supplied stays the same. B) 7 percent and quantity supplied rises by 5 percent. C) 5 percent and quantity supplied rises by 7 percent. D) 8 percent and quantity supplied rises by 8 percent 18) Suppose the price of a product rises and the total revenue of sellers increases 18) A) No conclusion can be reached with respect to the elasticity of supply B) It can be concluded that the demand for the product is elastic. C) It can be concluded that the supply of the peoduct is inelastic. D) It can be concluded that the supply of the product is elastic. 19) Studies of the minimum wage suggest that the price elasticity of demand for tcenage 19) workers is relatively inelastic. This means that: A) an increase in the minimum wage would increase the total incomes of teenage B) the unemployment effect of an increase in the minimum wage would be relatively C) an increase in the minimum wage would decrease the total incomes of teenage D) the cross elasticity of demand between teenage and adult workers is positive and workers as a group large. workers as a group. very large 20) Farmers often find that large bumper crops areassociated with declines in their gross 20) incomes. This suggests that: A) the price elasticity of demand for farm products is greater than 1 B) farm products are normal goods. C) the price elasticity of demand for farm products is less than 1. D) farm products are inferior goods. 21) The formula for cross elasticity of demand is percentage change in: A) price of X/percentage change in quantity demanded of Y B) quantity demanded of X/percentage change in price of Y C) quantity demanded of X/percentage change in price of X. D) quantity demanded of X/percentage change in income. 22) 22) Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in: A) the price of some other product. C) the price of that same product B) the general price level. D) income.

Explanation / Answer

Answer 17 option D

Answer 18 option A

Answer 19 option A

Answer 20 option C

Answer 21 option B

Answer 22 optiion A

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