If a 1 percent increase in price causes a 0.5 percent increase in quantity supplied, then supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) infinite.
Answer: B
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Social Security payments:
A. now hold their value over time. B. are adjusted for inflation using the CPI. C. undergo cost-of-living adjustments. D. All of these statements are true.
Other things constant, which of the following is likely to change the quantity of wheat supplied?
A) a government subsidy for farmers who do not grow wheat B) an increase in the price of soybeans C) a decrease in the price of the fertilizer used in wheat production D) a fall in the price of wheat E) an expectation of a future increase in wheat prices
Bob traps lobsters in Maine and sells them to a restaurant in Mexico. Other things the same, these sales
a. increase U.S. net exports and have no effect on Mexican net exports. b. increase U.S. net exports and decrease Mexican net exports. c. decrease U.S. net exports and have no effect on Mexican net exports. d. decrease U.S. net exports and increase Mexican net exports.
Figure 11-5
In Figure 11-5, Crown Theater, a monopolist movie theater, will make a profit of ____ at its profit-maximizing price and quantity of theater tickets.
a.
$450
b.
$150
c.
$300
d.
$750