At a price of $4, quantity supplied is 120, and at a price of $10, quantity supplied is 300. Using the midpoint formula, the price elasticity of supply is ________ and supply is ________.
A. 1; unit elastic
B. 0.40; inelastic
C. 2.5; elastic
D. 0.1; inelastic
Answer: A
You might also like to view...
In January 2015, Tim's Gyms, Inc owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's net investment totaled
A) $1 million. B) -$300,000. C) $200,000. D) -$100,000.
Which of the following is most important for the achievement of higher income levels and living standards?
What will be an ideal response?
Which one of the following statements regarding the intertemporal substitution hypothesis is false?
A. Labor supply responds to changes in the real wage. B. Wages and hours of leisure will tend to move together over the course of the life-cycle. C. Workers are willing reduce labor supplied during a recession. D. Increases in unemployment may be voluntary as workers collect unemployment insurance benefits. E. Increases in unemployment may be voluntary as workers trade income for leisure during low-wage periods.
Other things being equal a recession is likely to
A. have no effect on federal receipts or outlays. B. increase federal outlays but have no effect on federal receipts. C. decrease both federal outlays and receipts. D. increase federal outlays and reduce federal receipts.