Suppose an increase in the price of golf clubs from $75 to $125 leads to an increase in quantity supplied from 200 units to 300 units. The price elasticity of supply for golf clubs at the original price of $75 is ________, so supply is ________.
A. 4/3; elastic
B. 2; inelastic
C. 3/4; inelastic
D. 2; elastic
Answer: C
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What happens to the budget constraint of the recipient when he receives the $100 cash under Plan A? What is likely to happen to his consumption of both food and "all other goods" if they are both normal goods?
What will be an ideal response?
The general term for market structures that fall somewhere between monopoly and perfect competition is
a. incomplete markets. b. imperfectly competitive markets. c. oligopoly markets. d. monopolistically competitive markets.
A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer should add fertilizer if it costs less than:
A. $12.50 per pound. B. $20 per pound. C. $80 per pound. D. $100 per pound.
The investment demand curve is drawn with the amount of investment on the:
A. Vertical axis and disposable income on the horizontal axis
B. Horizontal axis and disposable income on the vertical axis
C. Horizontal axis and the expected rate of return and interest rate on the vertical axis
D. Vertical axis and the expected rate of return and interest rate on the horizontal axis