If the price elasticity of supply is 0.8, and price increased by 5%, quantity supplied would
a. increase by 4%.
b. increase by 6.25%.
c. decrease by 4%.
d. decrease by 6.25%.
a
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The contention that tariffs should be imposed to when a foreign government provides financial assistance its producers is
A) a national defense concern. B) the infant industry argument. C) dumping. D) to counter foreign subsidies.
If the government wished to shift aggregate demand to the right, it might:
A. increase government spending. B. increase income taxes. C. pressure the Fed to decrease the money supply. D. Any of these things might cause aggregate demand to shift to the right.
Ceteris paribus, a decline in the general price level in the United States will make foreign-produced goods relatively more expensive to the U.S. residents and increase the aggregate demand of domestic goods
a. True b. False Indicate whether the statement is true or false
The quantity theory of money can explain hyperinflations but not moderate inflation
a. True b. False Indicate whether the statement is true or false