If an increase in price from $1 to $2 per unit leads to an increase in quantity supplied from 20 to 100 units, then the value of price elasticity of supply is
a. 0.38
b. 2
c. 2.67
d. 4
e. 8
B
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The first economist to systematically analyze market failure was
A) Adam Smith. B) J. E. Meade. C) Ronald Coase. D) A. C. Pigou.
Econometrics can be defined as follows with the exception of
A) the science of testing economic theory. B) fitting mathematical economic models to real-world data. C) a set of tools used for forecasting future values of economic variables. D) measuring the height of economists.
Fiscal policy is likely to fail to correct stagflation in an economy because: a. it affects both aggregate demand and supply, although only aggregate supply needs to be changed
b. it affects both the aggregate demand and supply, although only aggregate demand needs to be changed. c. it affects aggregate demand only, although aggregate supply needs to changed. d. it affects aggregate supply only, although only aggregate demand needs to be changed. e. it affects either aggregate demand or aggregate supply, although both need to be changed simultaneously.
Economists define a labor market with only one buyer to be
a. a monopoly b. an oligopoly c. a monopsony d. perfectly competitive e. backward bending