A tavern is likely to have a ________ price elasticity of supply than does an antiques dealer due to ________.
A. less elastic; a shorter adjustment time
B. less elastic; a longer adjustment time
C. more elastic; availability of inputs
D. less elastic; availability of inputs
Answer: C
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The figure above illustrates the current market for apartments in Washington, D.C
a. If the local government imposes a price ceiling of $1,500 per month, is there a shortage? If so, how much? If not, why not? b. If the local government imposes a price ceiling of $900 per month, is there a shortage? If so, how much? If not, why not?
Assuming that as a result of observed past increases in the aggregate price level, workers' expectation of the current price level rises. Then,
a. less labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a lower real wage. b. the firm has to pay a higher money wage in order to obtain a given quantity of labor. c. more labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a higher real wage. d. Both a and b e. Both b and c
What is the difference between the utility function of a risk averse person and a risk neutral person
Which of the following statements best describes producer surplus in the supply and demand model?
a. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve below equilibrium. b. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve above equilibrium. c. Producer surplus is the area in the supply and demand model that is above the market price and the portion of the supply curve below equilibrium. d. Producer surplus is the area in the supply and demand model that is below the market price and the portion of the supply curve below equilibrium.