If the supply of oranges is unit elastic, the price elasticity of supply of oranges is
A. 1.0.
B. 0.0.
C. -1.0.
D. -100.0.
Answer: A
You might also like to view...
A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes. B) if consumers spend a small proportion of income on the product. C) the less time consumers have to adjust to price changes. D) if the product is a luxury good rather than a necessity. E) Both answers C and D are correct.
Refer to Figure f. A benefit function, W(F), is plotted in Figure f. The letter A represents:
A. the risk premium of the consumption bundle.
B. the expected utility of the consumption bundle.
C. the certainty equivalent of the consumption bundle.
D. the expected consumption.
A binding price floor creates
a. deadweight loss. b. consumer surplus. c. producer surplus. d. deadweight gain.
According to the classical dichotomy, which of the following increases when the money supply increases?
a. the real interest rate b. real GDP c. the real wage d. the nominal wage.