If price increases 6% and the quantity exchanged decreases 6%, what does that tell us about the elasticity of supply?
a. It tells us nothing about the elasticity of supply.
b. Supply is elastic
c. Supply is inelastic.
d. Supply is unit elastic.
a
You might also like to view...
Suppose an apartment complex is converted to an owner occupied condominium. Suppose that the estimated value of the condominium owners' housing services is now the same as their former rent
A) GDP increases. B) GDP decreases. C) GDP is unaffected because neither the rent nor the estimate of the value of housing services is included in GDP. D) None of the above.
Someone who values a lottery at less than the expected value is
a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries
George is a kitchen designer at Home Depot. What might cause George's supply curve of labor to shift to the left?
a. Kitchen prices decrease due to a decrease in the cost of lumber. b. George wins the lottery. c. The wage rate George gets increases. d. The wage rate George gets decreases. e. George's MRP increases after he takes computer classes.
If the tax doubles to $24, the distortion
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H. a) declines b) remains the same c) doubles d) triples e) quadruples