If a 1 percent increase in price causes a 2 percent increase in quantity supplied, then supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) infinite.
A
You might also like to view...
If foreign professionals perform equal quality work more cheaply than American professionals it is because
a. American professionals have lower opportunity costs that foreign professionals. b. foreign professionals have lower opportunity costs than American professionals. c. foreign professionals have a higher cost of living than American professionals. d. American professionals have a higher cost of living than foreign professionals.
Economists observed the following growth rates in the fourth quarter of 1995: real GDP = 2.8 percent; M1 = 7.8 percent; GDP Deflator = 2.2 percent. Given this data, the growth of nominal GDP was approximately
a. 12.8 percent. b. 10.0 percent. c. 5.6 percent. d. 5.0 percent. e. 0.6 percent.
The price system is constantly sending __________ and ___________ thousands of signals.
Fill in the blank(s) with the appropriate word(s).
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.
A. $6,000 B. $8,000 C. $10,000 D. $5,000