The value of the price elasticity of supply depends primarily on how quickly firms can acquire inputs to increase quantity supplied when price increases
Indicate whether the statement is true or false
TRUE
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A monopolist’s cost curves may shift down because
A. large-scale input purchases may permit the monopolist to take quantity discounts. B. of advertising expenditure. C. competitors are pushed out of the market. D. of bureaucratic inefficiencies.
If a 1% change in price leads to a 2% change in quantity demanded, then the elasticity of demand is
A. 0.5. B. 1.0. C. 1.5. D. 2.0.
Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.
Answer the following statement true (T) or false (F)
For supply-side inflation to occur in the long run
A. the long-run aggregate supply curve has to shift to the left. B. the aggregate demand curve has to shift to the left. C. the long-run aggregate supply curve has to shift to the right. D. the aggregate demand curve has to shift to the right.