The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Using the midpoint formula, what is the price elasticity of supply when price increases from $5 to $10?
A. 0.69
B. 0.51
C. 1
D. 0.64
Answer: C
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Which of the following is a distinguishing characteristic of oligopoly?
A) A large number of firms compete. B) Each firm's actions influence the profits of all the other firms. C) Firms are free to enter and exit the industry. D) Natural barriers cannot prevent the entry of new firms.
The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be
A) excess demand. B) excess supply. C) equilibrium. D) zero demand.
A tax on the buyers of cereal will increase the price of cereal paid by buyers,
a. decrease the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal. b. decrease the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal. c. increase the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal. d. increase the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.
Real GDP is the most effective measure for determining the:
A. Income level per household. B. Change in the price level. C. Standard of living across countries. D. Growth rate of the economy over time.