The total amount of copper in the earth is not increasing. Does this mean that in the market for copper, the supply curve is perfectly inelastic? Explain
What will be an ideal response?
The supply of copper is the quantity firms are willing to sell at each price. As price increases, firms are willing to work harder to mine copper, so the quantity supplied will increase as the price of copper rises, even though the total amount of copper in the ground is not increasing. Therefore, the supply curve for copper is not perfectly inelastic.
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Which of the following is correct?
A. Both conservative economists and Keynesians believe the crowding-out effect is small. B. Both conservative economists and Keynesians believe the crowding-out effect is large. C. Conservative economists believe the crowding-out effect is small, while Keynesians believe it is large. D. Conservative economists believe the crowding-out effect is large, while Keynesians believe it is small.
Hyperinflation may stimulate significant increases in real output in an economy.
Answer the following statement true (T) or false (F)
A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased. B) locating the intersection of the market demand and market supply curves. C) the horizontal summation of all the industry firms' individual supply curves. D) identifying the price at which each firm realizes its largest economic profit.
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls and aggregate supply rises. d. Aggregate demand rises and aggregate supply rises. e. Aggregate demand falls and aggregate supply falls.