Elastic supply
What will be an ideal response?
the quantity supplied is sensitive to changes in price. Thus a change in price leads to a relatively large change in quantity supplied.
You might also like to view...
In the foreign exchange market, a decrease in the supply of dollars leads to an appreciation of the U.S. dollar
Indicate whether the statement is true or false
When a firm leaves a perfectly competitive industry,
A. the individual demand curves facing remaining firms shift toward the point of minimum average cost in the long run. B. short-run industry equilibrium is reestablished at a new point along the original short-run industry supply curve. C. the short-run industry supply curve shifts to the right. D. at the new long-run equilibrium, the remaining firms in the industry will each receive a higher profit.
Statistical discrimination refers to
a. the statistical measurement of the effects of prejudice on minorities excluded from employment b. the monetary impact of prejudice on minorities, in contrast to the nonmonetary impact c. government tracking of the economy-wide impact of discrimination against minorities d. using statistics to explain employer discrimination against minorities e. exclusion of individuals from an activity due to the probability of behavior in their group rather than personal characteristics
Exhibit 14A-6 Aggregate demand and supply model
?
Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 14A-6, the real GDP and price level (CPI) in long-run equilibrium will be:
A. $10 billion and 200. B. $4 billion and 150. C. $10 billion and 150. D. $10 billion and 100.