As the price of tomatoes fell from $2.50 to $2.00, the quantity imported from Mexico fell from 1,800 tons to 900 tons. The elasticity of supply of tomatoes imported from Mexico is:
A. 5.
B. 0.25.
C. 3.0.
D. 0.3.
Answer: C
You might also like to view...
In the graph above, which points reflect an interest parity arbitrage opportunity?
A) point A B) point B C) point C D) points B and C
An increase in real income with constant prices and domestic credit leads to the same effects under both fixed and purely flexible exchange rates
Indicate whether the statement is true or false
If all land had equal productivity, then
a. land rent would increase b. differential land rents would not exist c. location rent would not exist d. locations rent would be everywhere the same e. differential rent would increase
John is willing to sell his car for $3,000 . If the market price of the car is $5,000 . the producer surplus that John will receive is _____
a. $2,000 b. $3,000 c. $5,000 d. $8,000