choose the correct ans 23. Es for a positively sloped straight-line supply curve that intersects the price axis is (a) equalto zero, (b) equal to 1, (c) greater than 1, or (d) constant.24. Which of the following elasticities measure a movement along a curve rather than a shift inthe curve?(a) The price elasticity of demand. (c) The cross elasticity of demand.(b) The income elasticity of demand. (d) The price clasticity of supply.25. When total utility increases, marginal utility is (a) negative and increasing, (b) negative anddeclining, (c) zero, or (d) positive and declining.26. If the MU of the last unit of X consumed is twice the MU of the last unit of Y consumed, theconsumer is in equilibrium only if (a) the price of X is twice the price of Y, (b) the price of X iscqual to the price of Y, (c) the price of X is one half of the price of Y, or (d) any of the above ispossible.27. The statement C 4D4 10 utils implies (a) an ordinal measure of utility only,. (b) a cardinalmeasure of utility only, (c) an ordinal and a cardinal measure of utility, or (d) none of the above.28. If an indifference curve were horizontal (assume X is measured along the horizontal axis andY along the vertical axis), this would mean that the consumer is saturated with (a) commodity Xonly, (b) commodity Y only, (c) both commodity X and commodity Y, or (d) neither commodityX nor commodity Y.29. A consumer who is below the personal budget line (rather than on it) (a) is not spending allpersonal income, (b) is spending all personal income, (c) may or may not be spending allpersonal income, or (d) is in equilibrium.30. At equilibrium, the slope of the indifference curve is (a) cqual to the slope of the budget line,(b) greater than the slope of the budget line, (c) smaller than the slope of the budget line, or (d)either equal, larger, or smaller than the slope of the budget line.

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23. Es for a positively sloped straight-line supply curve that intersects the price axis is (a) equal to zero, (b) equal to 1, (c) greater than 1, or (d) constant.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3.6P: (Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following...

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Question

choose the correct ans

23. Es for a positively sloped straight-line supply curve that intersects the price axis is (a) equal
to zero, (b) equal to 1, (c) greater than 1, or (d) constant.
24. Which of the following elasticities measure a movement along a curve rather than a shift in
the curve?
(a) The price elasticity of demand. (c) The cross elasticity of demand.
(b) The income elasticity of demand. (d) The price clasticity of supply.
25. When total utility increases, marginal utility is (a) negative and increasing, (b) negative and
declining, (c) zero, or (d) positive and declining.
26. If the MU of the last unit of X consumed is twice the MU of the last unit of Y consumed, the
consumer is in equilibrium only if (a) the price of X is twice the price of Y, (b) the price of X is
cqual to the price of Y, (c) the price of X is one half of the price of Y, or (d) any of the above is
possible.
27. The statement C 4D4 10 utils implies (a) an ordinal measure of utility only,. (b) a cardinal
measure of utility only, (c) an ordinal and a cardinal measure of utility, or (d) none of the above.
28. If an indifference curve were horizontal (assume X is measured along the horizontal axis and
Y along the vertical axis), this would mean that the consumer is saturated with (a) commodity X
only, (b) commodity Y only, (c) both commodity X and commodity Y, or (d) neither commodity
X nor commodity Y.
29. A consumer who is below the personal budget line (rather than on it) (a) is not spending all
personal income, (b) is spending all personal income, (c) may or may not be spending all
personal income, or (d) is in equilibrium.
30. At equilibrium, the slope of the indifference curve is (a) cqual to the slope of the budget line,
(b) greater than the slope of the budget line, (c) smaller than the slope of the budget line, or (d)
either equal, larger, or smaller than the slope of the budget line.

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