If the price increases by 20 percent and the quantity supplied increases by 40 percent, what does the elasticity of supply equal?
What will be an ideal response?
The price elasticity of supply = (percentage change in the quantity supplied) ÷ (percentage change in price) = (40 percent) ÷ (20 percent) = 2.00.
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When the good on the horizontal axis is a composite good, the slope of the budget constraint is minus the price of the good on the vertical axis.
Answer the following statement true (T) or false (F)
Examples of transfers-in-kind include
A) tax rebates on both the federal and state levels. B) taxes on alcohol and tobacco. C) food stamps and public housing. D) political advertising.
Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:
A. quantity of workers supplied will exceed the quantity of workers demanded. B. supply of labor will decrease until the equilibrium wage rate is $17.85. C. demand for labor will increase until the equilibrium wage rate is $17.85. D. quantity of workers demanded will exceed the quantity of workers supplied.
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. At the world price of 30 cents per apple, the United States imports ________ million apples per day.
A. 2 B. 4 C. 6 D. 10