Refer to the graph shown. When price rises by 20 percent, quantity supplied rises by 25 percent. Which curve best demonstrates elasticity in this example?
A. A
B. B
C. C
D. None of the answers is correct.
Answer: C
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Refer to Figure 22-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) a decline in capital per worker. C) an improvement in technology. D) diminishing returns to labor.
A fall in the government's budget deficit will lower
A) equilibrium GDP and consumption. B) consumption and saving. C) saving and GDP. D) All of the above are correct.
The income flow in the form of resource payments from firms to households, and in the form of revenue from households to firms, is known as the circular flow of money
Indicate whether the statement is true or false
Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either a tariff or a quota on imported personal
computers. a . Explain which Congress will choose if it wants to restrict trade, yet please importers. b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. c. How do tariffs and quotas differ?