Explain the economic concept of price elasticity of supply. How is price elasticity of supply calculated?
What will be an ideal response?
Price elasticity of supply refers to the responsiveness of the quantity of a product supplied to a change in price. Price elasticity of supply is calculated by dividing the percentage change in the quantity of a product supplied by the percentage change in the product's price.
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By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid
A) paying high salaries to their managers. B) corporate governance. C) the principal-agent problem. D) conflict between the CFO and the CEO.
In a competitive economy, the questions of what, how, and for whom to produce tend to be regulated by
A. the government. B. businessmen. C. the price system. D. workers.
A corporation that specializes in owning shares of stock in other corporations is called a
a. secondary market b. mutual fund c. stock broker d. second hander e. day trader
Most prophecies of the imminent exhaustion of many natural resources have not come true because
a. such resources are generally available in infinite quantities. b. rising prices for resources have stimulated supply and encouraged innovation. c. the demand for most natural resources has fallen as income levels have increased. d. government price floors have prevented resource exhaustion.