The elasticity of supply is calculated by
A. determining the slope of the supply curve.
B. dividing the absolute change in quantity supplied by the absolute change in price.
C. dividing the percentage change in quantity supplied by the percentage change in price.
D. dividing the percentage change in price by the percentage change in quantity demanded.
Answer: C
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A consumption-based theory of the determination of the real interest rate is based on the assumption that: a. a rise in the real interest rate will increase current consumption
b. the real interest rate must adjust to make people willing to experience changing consumption levels over time. c. the real interest rate is determined by the supply and demand for investment and is therefore unaffected by consumption decisions. d. the real interest rate must be positive.
When diminishing returns set in, total output begins to decrease
Indicate whether the statement is true or false
The goals of equity and ________________ are sometimes in conflict.
A. fairness B. efficiency C. capital
Once a cartel is formed, the market is in effect served by
a. a monopoly. b. an oligopoly. c. imperfect competition. d. monopolistic competition.