A t-shirt maker would be willing to supply 75 t-shirts per day at a price of $18.00 each. At a price of $20.00, the t-shirt maker would be willing to supply 100 t-shirts. Using the midpoint method, the price elasticity of supply for t-shirts is about
a. 0.37, and supply is elastic.
b. 0.37, and supply is inelastic.
c. 2.71, and supply is elastic.
d. 2.71, and supply is inelastic.
c
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One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
Policies aimed at reducing the natural rate of unemployment are referred to as
a. stabilization policies. b. structural policies. c. macroeconomic policies. d. labor policies.
The use of money as a medium of exchange requires a double coincidence of want
a. True b. False Indicate whether the statement is true or false
If marginal cost exceeds marginal revenue,
a. the firm can increase profits by increasing output b. the firm will lower profits by increasing output c. the firm is maximizing profits d. total cost exceeds total revenue e. average cost equals average revenue