Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose a bank has the following balance sheet:
Assets Liabilities Reserves $14,000 Deposits $100,000 Loans $90,000 Net Worth $4,000 If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?
Why is the tax multiplier smaller than the government spending multiplier?
If the demand for bus transportation in a city is inelastic, then the city should lower the price to increase revenue
Indicate whether the statement is true or false
Refer to the accompanying figure. If the price is $4 today and there is no change in either supply or demand, one would expect the price in the future to be:
A. less than $4. B. greater than $4. C. greater than $6. D. $4.