When the price of a textbook is $95, the quantity of textbooks supplied is 90 million a year and when the price rises to $105, the quantity of textbooks supplied is 110 million a year. The supply of textbooks is
A) elastic.
B) perfectly elastic.
C) inelastic.
D) perfectly inelastic.
E) unit elastic.
A
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Total output and total income in the circular flow model
A) are measures of the economy's level of savings. B) include only intermediate goods. C) are equal to each other. D) are related because national income is less than national product.
For a closed economy, GDP is $11 trillion, consumption is $7 trillion, taxes are $2.5 trillion and the government runs a surplus of $1 trillion. What are private saving and national saving?
a. $1.5 trillion and $2.5 trillion, respectively b. $2.5 trillion and $1.5 trillion, respectively c. $2.5 trillion and $2.5 trillion, respectively d. $1.5 trillion and $1.5 trillion, respectively
The production possibilities curve represents which of the following?
a. the amount of goods attainable with variable resources. b. the maximum amount of goods attainable with variable resources. c. the maximum combinations of goods attainable with fixed resources. d. the amount of goods attainable if prices decline.
In the above figure, the long-run cost curve between points E and F illustrates
A. diseconomies of scale. B. diminishing marginal product. C. constant returns to scale. D. economies of scale.