For a given increase in price, the greater is the elasticity of supply, the greater is the resulting
a. decrease in quantity supplied.
b. decrease in supply
c. increase in quantity supplied.
d. increase in supply.
c
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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. CheapFizz now has market power due to:
A. network economies in the consumption of soda. B. its exclusive ownership of an input. C. its exclusive license to sell soda. D. economies of scale in the production of soda.
In a small town the level of demand is capable of supporting only two gas stations. This market is
A) a natural duopoly. B) perfectly competitive because a homogeneous good is being sold. C) operating as if it was a monopoly. D) an example of monopolistic competition.
A critical function of the government in facilitating the operation of a market economy is
A) producing goods and services for low-income households. B) setting up and enforcing private property rights. C) ensuring an equal distribution of income to all citizens. D) controlling the market prices of food items.
A college dean has a __________ opportunity cost of __________ than a college student working in a minimum-wage job
a. lower; leisure b. lower; nonmarket work c. lower; market work d. higher; nonmarket work e. higher; market work