The price elasticity of supply is the __________________ change in the quantity supplied of a good or service divided by the percentage change in the price.
a. quantity
b. percentage
c. relative
d. absolute
b. percentage
The price elasticity of supply is the percentage change in the quantity supplied of a good or service divided by the percentage change in the price.
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Economics can be defined as the social science that explains the ________
A) choices made by politicians B) choices we make when we trade in markets C) choices that we make as we cope with scarcity D) choices made by households
The Keynesian model agrees with monetarists and new classical models about the fact that
a. changes in the money supply drive most changes in aggregate demand. b. aggregate supply is upward sloping because of differences between actual and expected price levels. c. changes in aggregate demand drive business cycles. d. Both b and c e. None of the above
A recessionary gap exists when the equilibrium level of GDP
a. falls short of potential GDP. b. equals potential GDP. c. exceeds potential GDP. d. causes inventory levels to fall.
Milo drives to work 30 miles on the freeway every day. Briefly explain what type of spillover Milo’s actions are creating, and explain why it is this type of spillover and how it influences others.
What will be an ideal response?