At price of $1.25, a paper manufacturer is willing to supply 150 spiral notebooks per day. At a price of $1.50, the paper manufacturer is willing to supply 175 spiral notebooks per day. Using the midpoint method, the price elasticity of supply is about
a. 1.18.
b. 1.00.
c. 0.85.
d. 0.25.
c
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If a price ceiling on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) all of the above will occur. E) none of the above will occur.
A progressive income tax system can be defined as one in which
a. the government uses taxes paid by the wealthy to fund programs for the poor. b. an individual pays more dollars in taxes when his income rises. c. the marginal tax rate rises over time. d. the average tax rate is higher for individuals with higher incomes.
Suppose 80% of U.S. trade is with England and the rest is with Japan. If the dollar rises by 10% against the pound and rises by 20% against the yen, what is the percentage change in the effective exchange rate of the United States?
a. -16% b. -12% c. -8% d. -4%
Something that affects the amount of money in existence will
A. affect all markets. B. not affect the economy as a whole but may affect certain key markets such as the market for loans. C. have no particular effect. D. have an effect only if the change in money is large.