The price elasticity of supply is usually a positive number because
A) price rises when supply increases.
B) quantity supplied increases in response to price increases.
C) quantity supplied increases in response to income increases.
D) the quantity demanded usually rises when price falls and therefore suppliers would want to capitalize on this increase in demand.
B
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Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8
Gil could increase his utility without violating his budget by consuming A) more pens and fewer milkshakes. B) more pens and more milkshakes. C) fewer pens and fewer milkshakes. D) fewer pens and more milkshakes.
Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q
What specific tax would result in a competitive market producing the socially optimal quantity of paper?
"New industries should be protected from older established foreign competitors until they are mature enough to compete on an equal basis." This argument for trade restrictions is called the __________ argument
A) low-foreign-wages B) foreign export-subsidies C) anti-dumping D) infant-industry
The demand for labor by a profit-maximizing firm is determined by:
A. VMPL = W. B. MPL = W. C. MPL = MC. D. VMPL = MC.