Suppose that in a month the price of movie rentals increases from $2 to $2.20. At the same time, the quantity of movie rentals supplied increases from 100 to 110. The price elasticity of supply for movie rentals (calculated using the initial value formula) is:
A. 0.02.
B. 0.2.
C. 1.
D. 50.
Answer: C
You might also like to view...
A "long-run exploitable Phillips curve" refers to a Phillips curve that in the long run is ________ rather than ________
A) downward sloping; vertical B) vertical; horizontal C) horizontal; upward sloping D) upward sloping; vertical
Compare and contrast hedge funds and mutual funds in terms of the benefits and drawbacks of each
What will be an ideal response?
A consequence of imposing a price floor is that
a. the new price (or price floor) is below the old equilibrium price b. an excess supply of the good is created at the floor price c. an excess demand for the good is created at the floor price d. the supply of the good decreases e. the demand for the good increases
Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza:
A. becomes negative. B. doesn't change. C. decreases. D. increases.