The price of lumber increased by 10 percent and the quantity supplied increased by 20 percent. The supply of lumber is
A) inelastic.
B) perfectly elastic.
C) perfectly inelastic.
D) unit elastic.
E) elastic.
E
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A firm’s break-even point occurs where
a. marginal revenue equals marginal cost. b. marginal revenue equals average variable cost. c. total revenue equals total cost. d. total revenue equals total variable cost.
If all of the money currently spent on redistribution in the United States were directly transferred to the poor _____
a. it could turn the hard-core poor into the marginal poor b. it would not turn the hard-core poor into the marginal poor c. it is unclear what the effect would be on the hard-core poor d. the income of the poor would be raised above the current national average
There is substantial evidence that people base their consumption decisions more on their current income than on the average income they expect to receive over a long period of time
a. True b. False Indicate whether the statement is true or false
Monetarists differ from traditional classical theorists in their belief that
a. velocity is not constant b. the only motive for demanding money is the transactions demand c. investment is very sensitive to changes in the interest rate d. the economy operates at full-employment e. increases in the money supply do not lead to changes in real GDP