The most important determinant of price elasticity of supply is
a. price elasticity of demand
b. technological conditions such as how rapidly costs increase when a firm increases its output
c. whether the production process relies heavily on capital or on labor
d. the number and closeness of available substitutes
e. whether the product is a normal good or an inferior good
B
You might also like to view...
Explain how unemployment changes over the business cycle. Why do these changes occur?
What will be an ideal response?
During the 2007-2009 financial crisis the currency ratio
A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly.
The rule for the optimal use of any input says that
A. when MRP is less than price, it pays to expand resource use. B. when MRP is greater than price, it pays to expand resource use. C. when MRP equals price, resource use should be cut back. D. resources should be used only if MRP exceeds price.
In late 2007 and early 2008, concerns about financial institutions led the Fed to
A) create special lending facilities. B) raise the target for the fed funds rate. C) increase reserve requirements. D) pay interest on bank reserves.