Refer to the above figure. The supply curve is
A) elastic at high prices and inelastic at low prices.
B) unitary for all prices.
C) perfectly elastic.
D) perfectly inelastic.
D
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Explain carefully why the assumption of identical technology worldwide eliminates the classical basis for international trade
What will be an ideal response?
The Taylor Principle states that central banks raise nominal rates by ________ than any rise in expected inflation so that real interest rates ________ when there is a rise in inflation
A) less; rise B) more; fall C) less; fall D) more; rise
In 1970s the federal government imposed price controls on natural gas. Which of the following statements is true?
A) These price controls caused a chronic excess supply of natural gas. B) Consumers gained from the price controls, because consumer surplus was larger than it would have been under free market equilibrium. C) Producers gained from the price controls because producer surplus was larger than it would have been under free market equilibrium. D) This episode of price controls was unusual, because it resulted in no deadweight loss to society.
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. An increase in the price of tomatoes (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to
A. Point C on supply curve S2. B. supply curve S1. C. supply curve S3. D. Point A on supply curve S2.