The price elasticity of supply is higher when
A) the number of buyers in the market decreases.
B) the product in question is an inferior good.
C) the number of buyers in the market increases.
D) producers have more time to adjust to price changes.
Answer: D
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Use the following graph of the market for milk to answer the question below.
In this market, the equilibrium price is ________ and equilibrium quantity is ________.
A. $28 per gallon; 150 million gallons B. $1.50 per gallon; 30 million gallons C. $1.50 per gallon; 28 million gallons D. $1.00 per gallon; 35 million gallons
Refer to Table 11-2. Calculate the GDP per capita for each country in the table. Which country has the highest standard of living? Why?
What will be an ideal response?
What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this "one good thing" called?
A) the income effect B) the price effect C) the substitution effect D) the output effect