Principles of Microeconomics

N. GREGORY MANKIW

Chapter 5 Elasticity and Its Application - all with Video Answers

Educators

Chapter Questions

07:05

Problem 1

A life-saving medicine without any close substitutes
will tend to have
a. a small elasticity of demand.
b. a large elasticity of demand.
c. a small elasticity of supply.
d. a large elasticity of supply.

Sojeong Yoon

Numerade Educator

04:27

Problem 2

The price of a good rises from $\$ 8$ to $\$ 12,$ and the
quantity demanded falls from 110 to 90 units.
Calculated with the midpoint method, the price
elasticity of demand is
a. 1$/ 5 .$
b. 1$/ 5 .$
c. 2 .
d. 5 .

Shamshad Waris

Numerade Educator

02:48

Problem 3

A linear, downward-sloping demand curve is
a. inelastic
b. unit elastic.
c. elastic.
d. inelastic at some points, and elastic at others.

Heather Duong

Numerade Educator

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Problem 4

The ability of firms to enter and exit a market over
time means that, in the long run,
a. the demand curve is more elastic.
b. the demand curve is less elastic.
c. the supply curve is more elastic.
d. the supply curve is less elastic.

Sandile Ndlovu

Numerade Educator

04:53

Problem 5

An increase in the supply of a good will decrease the
total revenue producers receive if
a. the demand curve is inelastic.
b. the demand curve is elastic.
c. the supply curve is inelastic.
d. the supply curve is elastic.

Heather Duong

Numerade Educator

06:22

Problem 6

Over time, technological advance increases consumers'
incomes and reduces the price of smartphones. Each
of these forces increases the amount consumers spend
on smartphones if the income elasticity of demand is greater than ________ and if the price elasticity of demand is greater than ________.
a. 2 ero, zero
b. zero, one
c. one, zero
d. one, one

Xiaotong Liu

Numerade Educator