Which of the following examples fits the formula ES ? 1?
a. When the price of compasses increases 5 percent, the quantity supplied increases 3 percent.
b. When the price of canteens increases 8 percent, the quantity supplied increases 10 percent.
c. When the price of backpacks increases 10 percent, the quantity supplied increases 6 percent.
d. When the price of hiking shows increases 12 percent, the quantity supplied increases 4 percent.
b. When the price of canteens increases 8 percent, the quantity supplied increases 10 percent.
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The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve
A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of A) Q1 units. B) Q2 units. C) Q2 - Q1 units. D) Q1 - Q2 units.
Corrective taxes work by ______.
a. internalizing external costs b. externalizing internal costs c. subsidizing moral hazards d. criminalizing adverse selection
In the derivation of ATC, to find its minimum, you need
A. the minimum-slope ray out of the origin to the TVC. B. the minimum-slope ray out of the origin to the ATC. C. the minimum-slope ray out of the origin to the TC. D. the flattest slope on the TC.
Refer to Scenario 1.1 below to answer the question(s) that follow.SCENARIO 1.1: An economist wants to understand the relationship between minimum wages and the level of teenage unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that a 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers.Refer to Scenario 1.1. A graph of the value of the minimum wage on one axis and the level of teenage unemployment on the other axis is an example of
A. a variable theory. B. an economic theory. C. an economic model. D. inductive reasoning.