We expect the price elasticity of supply to be
A. positive.
B. between -1 and +1.
C. negative.
D. zero.
Answer: A
You might also like to view...
If your salary increases at a lower rate than prices are increasing, what would happen to your buying power?
What will be an ideal response?
Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases. B) does not change. C) decreases. D) could increase, stay the same, or decrease.
If MUx/Px exceeds MUy/Py, then the consumer should
a. consume more of good X and less of good Y b. consume less of good X and more of good Y c. consume less of both goods X and Y d. not change the consumption levels of X and Y e. consume more of good Z
Suppose that deposit insurance were reduced to a maximum of $50,000 per account (instead of $250,000). This would address the specific market imperfection of
a. externalities. b. imperfect information. c. rent seeking. d. moral hazard.