Assume 300 billion pounds of Ostrich meat is produced per year when the price is 50 cents per pound, and 500 billion pounds when the price is 60 cents per pound. The supply of Ostrich meat, other factors held constant, is:
A. price elastic.
B. price inelastic.
C. income elastic.
D. income inelastic.
Answer: A
You might also like to view...
An increase in the equilibrium price for a product will result
A) when there is an increase in demand and an increase in the number of firms producing the product. B) when there is a decrease in supply and a decrease in demand for the product. C) when there is a decrease in supply and an increase in demand for the product. D) when the quantity of the product demanded exceeds the quantity supplied.
When a resource used in the production of a good sold in a competitive market is available in only limited quantities, the long-run supply curve is likely to be upward sloping
a. True b. False Indicate whether the statement is true or false
Suppose a central bank announced that it was going to make a serious effort to fight inflation. A few years later the inflation rate is lower, but there had been a serious recession. We could conclude with certainty that
a. the rational expectations hypothesis is false. b. the rational expectations hypothesis is true. c. the policymakers lacked credibility. d. None of the above is certain.
During a football game, it starts to rain and the temperature drops. The senior class, which runs the concession stand and is studying economics, raises the price of coffee from 50 cents to 75 cents a cup. They sell more than ever before. Which answer explains this?
What will be an ideal response?