If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is
A) greater than one and supply is elastic.
B) negative and supply is inelastic.
C) less than one and supply is elastic.
D) less than one and supply is inelastic.
E) greater than one and supply is inelastic.
D
You might also like to view...
A forward exchange market contract obligates the owner to make a trade at a specified exchange rate a fixed number of days in the future
Indicate whether the statement is true or false
Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. What is the expected rate of return on the stock?
A) -40% B) -20% C) 8% D) 16%
If the U.S. government decides to eliminate a budget surplus by reducing taxes, the most likely effect would be
a. falling prices. b. a reduction in the trade deficit. c. an increase in unemployment. d. upward pressure on prices.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:
A. 3 units of wheat. B. 3 units of corn. C. 1/3 unit of wheat. D. 15 units of wheat.