Explain why the availability of resources affects the elasticity of supply
What will be an ideal response?
A good that can be produced using commonly available resources has costs that increase only a little when its production increases. Its supply will be more elastic. If, however, the production of a good requires very specialized resources, an increase in production will be very costly. Its supply will be more inelastic.
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Increases in the price level
A) decrease the opportunity cost of holding money. B) increase the quantity of money needed for buying and selling. C) increase the opportunity cost of holding money. D) decrease the quantity of money needed for buying and selling.
A random variable is
a. A variable that takes of values that are uncertain b. A variable that takes on known values c. A variable that is always zero d. A variable that takes on null values only
In the open-economy macroeconomic model, the real exchange rate does not affect net capital outflow
a. True b. False Indicate whether the statement is true or false
A new firm enters a market which is initially serviced by a Cournot duopoly charging a price of $20. What will the new market price be should the three firms coexist after the entry?
A. Above $20 B. $20 C. Below $20 D. None of the answers is correct.