Refer to the accompanying figure. What is the price elasticity of supply at point A?
A. 4
B. 1
C. 2
D. 1/2
Answer: B
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What will be an ideal response?
The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public. B) the power of advertisement. C) the problem of collective action. D) the basic impossibility of the democratic system to reach a fair solution. E) a cycle of political corruption.
The term ‘u' in an econometric model is usually referred to as the _____.
A. error term B. parameter C. hypothesis D. dependent variable
If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then:
A. the demand for the product is elastic in the $6-$5 price range. B. the demand for the product must have increased. C. elasticity of demand is 0.74. D. the demand for the product is inelastic in the $6-$5 price range.