A pharmaceutical company hired two analysts to independently calculate the elasticity of supply of its product. According to Analyst A, the price elasticity of supply for the company is 0.36, and according to Analyst B, the price elasticity of supply is 0.88 . Assuming that neither analyst has made a mistake in calculations, it can be concluded that:
a. Analyst A studied the data for a longer
period of time than Analyst B.
b. Analyst A studied the data for a shorter period of time than Analyst B.
c. the data provided by the company had variations in it.
d. the average of the two values can provide the accurate price elasticity of supply.
b
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Christina Romer argued that
A) measured properly, GNP before 1929 varied substantially less over time than the official statistics showed. B) measured properly, GNP after 1929 varied substantially more over time than the official statistics showed. C) measured properly, economic expansions after 1929 were shorter than the official statistics showed. D) measured properly, economic expansions before 1929 were shorter than the official statistics showed.
If a firm has short-run losses, will it stay open? Under what conditions will a firm close in the short run? Explain
If the real deficit is $200 billion, the inflation rate is 5 percent, and the debt is $3 trillion, then the nominal deficit is:
A. $300 billion. B. $350 billion. C. $250 billion. D. $100 billion.
If an economist observed that higher hot dog prices lead to a decrease in the demand for chili, she most likely would conclude that:
A. chili and hot dogs are both inferior goods. B. chili and hot dogs are substitutes. C. chili and hot dogs are complements. D. chili and hot dogs are both normal goods.