For a product with a constant or gently increasing opportunity cost of producing additional units, as more is produced, we expect that
A) demand is price elastic.
B) supply is price elastic.
C) demand is price inelastic.
D) supply is price inelastic.
E) demand is unit elastic.
B
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Rebecca consumes both iced tea and coffee. Iced tea is priced at $1.50 per bottle and coffee at $2.00 per 16-ounce cup. Which of the following marginal utility pairs is consistent with Rebecca's consumer equilibrium at these prices?
a. MU of iced tea = 1; MU of coffee = 1 b. MU of iced tea = 1; MU of coffee = 2 c. MU of iced tea = 2; MU of coffee = 3 d. MU of iced tea = 3; MU of coffee = 4
Which of the following lists two things that both increase the money supply?
a. raise the discount rate and make open market purchases b. raise the discount rate and make open market sales c. lower the discount rate and make open market purchases d. lower the discount rate and make open market sales
What causes the aggregate supply curve to have an upward slope in the short run, but a vertical slope in the long run?
What will be an ideal response?
By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics. B. microeconomics and macroeconomics. C. reservation price and opportunity cost. D. marginal benefit and marginal cost.