Suppose the supply of bicycles is price elastic. This means that
A) consumers will respond significantly to an increase in the quantity of bicycles supplied.
B) suppliers will respond significantly to changes in the price of bicycles.
C) suppliers face many substitutes for bicycles.
D) suppliers will increase the quantity of bicycles supplied, but not immediately.
B
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When output is less than the efficient level,
A) consumers are willing to pay more for another unit than it costs to produce the unit. B) the amount consumers are willing to pay equals the cost of production. C) the cost of production is greater than the price consumers are willing to pay. D) the production costs can't be measured. E) the marginal cost of producing the good must be greater than the marginal benefit from the good.
Which of the following can be described as direct finance?
A) You take out a mortgage from your local bank. B) You borrow $2500 from a friend. C) You buy shares of common stock in the secondary market. D) You buy shares in a mutual fund.
To improve your own bargaining position
a. decrease the value of your outside options b. increase the value of your outside options c. do not alter the value of your outside options d. increase the value of your opponent's outside options
According to a World View article titled "Trading Chickens for Diapers," the Venezuelan economy turned to a barter system because
A. A system of barter is typically more efficient than a monetary system. B. It is usually easier to measure the value of goods in terms of other goods rather than cash. C. The movement to a cashless society was the next step in the movement toward the ideal communist state. D. The bolivar has become worthless.