If the percentage change in price is 10%, and the percentage change in quantity supplied is 5%, then the supply for the good is

A. perfectly inelastic.
B. inelastic.
C. elastic.
D. unit elastic.


Answer: B

Economics

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The interest rate is the price borrowers pay to borrow money.  Key interest rates are controlled by the Federal Reserve System.  If the Federal Reserve acts to reduce interest rates, economists would expect the demand for money to

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Which of the following holds true, if goods sell for the same price worldwide when converted to a common currency?

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Which of the following would increase labor productivity, ceteris paribus?

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Economics

The figure below depicts the relationship between the social benefits and social costs associated with different levels of pollution. The two curves are Social Marginal Cost (SMC) and Social Marginal Benefit (SMB). The other terms are P = Price of the commodity, MC = Marginal Cost (private), and MB = Marginal Benefit (private). For pollution level 'a', ________, therefore the country should ________ pollution.

A. SMB > SMC; increase B. SMB > SMC; decrease C. SMC < MC = P = MB; decrease D. SMC = MC; decrease

Economics