An important determinant of the price elasticity of supply is the extent to which
A) the commodity is a luxury or a necessity.
B) the demand for it is both price and income elastic.
C) the product has many complements or substitutes.
D) production requires the use of particularly scarce or specialized resources.
D
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What is the shape of the total revenue curve derived from a horizontal demand curve?
A) Horizontal B) Vertical C) U-shaped D) Upward sloping, with a positive slope
In the rational expectations model, only unexpected or unpredictable changes cause unemployment to deviate from its natural rate
a. True b. False Indicate whether the statement is true or false
During the past 100 years, the United States has transformed into primarily
A. A service economy. B. An agricultural economy. C. A closed economy with little foreign trade. D. A manufacturing economy.
Explain why the following graph is likely to represent the long-run equilibrium for a representative firm in monopolistic competition. What will be the product price, output, and amount of economic profit?
What will be an ideal response?