The price elasticity of supply measures
A. the responsiveness of quantity demanded to a change in price.
B. the change in price due to a change in quantity supplied.
C. the responsiveness of quantity supplied to a change in price.
D. the change in supply due to a change in input prices.
Answer: C
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Holding all other things constant, a higher price for ski lift tickets would
a. increase the number of skiers. b. increase the price of skis. c. decrease the number of skis sold. d. decrease the demand for other winter recreational activities.
A similarity between monopoly and monopolistic competition is that in both market structures
a. strategic interactions among sellers are important. b. there are a small number of sellers. c. sellers are price makers rather than price takers. d. there are only a few buyers but many sellers.
Unemployment implies that in the labor market there is
A. an excess supply of workers. B. an excess demand for labor. C. a shortage in the supply of labor. D. an excess supply of available jobs.
Refer to the profits-payoff table for a duopoly. If the firms are acting independently and firm X sets its price at $6, firm Y will achieve the largest profit by selecting:
A. a price higher than $6.
B. a price between $5 and $6.
C. $6.
D. $4.