If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3
B. 1
C. 0.3
D. 0
Answer: A
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A shortage will occur when
A) the price equals the market clearing level. B) the price is above the market clearing level. C) there is an excess quantity supplied. D) the price is below the market clearing level.
The poverty rate is defined as:
A. the percentage of the population that falls below the relative poverty line. B. the percentage of the population that falls below the absolute poverty line. C. the percentage of low income earners to high income earners. D. the lowest one percent of all income earners.
One difference between a tariff and a quota is that the tariff brings in revenue to the government while the quota benefits the foreign producer who is lucky enough to receive an import license
a. True b. False Indicate whether the statement is true or false
In both price-taker and competitive price-searcher markets, when an increase in market demand disrupts a long-run equilibrium, it will lead to
a. higher short-run prices and long-run profits. b. higher short-run prices, short-run profits, and the entry of additional firms into the market. c. higher short-run prices and the exit of firms from the market due to economies of scale. d. no change in prices in the short run, but new firms will enter in the long run.