The elasticity of supply coefficient for lobster is estimated to be equal to 0.6 . It is expected, therefore, that a 10% decrease in price would lead to:
a. a 6% decrease in the quantity of lobsters supplied.
b. a 6% increase in the quantity of lobsters supplied.
c. a 10% decrease in the quantity of lobsters supplied.
d. a 10% increase in the quantity of lobsters supplied.
a
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A recessionary gap occurs when
A) aggregate demand falls, but other things remain constant. B) the short-run equilibrium level of real GDP is less than the level consistent with the long-run aggregate supply curve. C) the short-run equilibrium level of real GDP is greater than the level consistent with the long-run aggregate supply curve. D) short-run aggregate supply falls, but other things remain constant.
Technological progress occurs when the economy gets more output
A) without any more capital or labor. B) by using more capital but not more workers. C) by using more capital per worker. D) by using more labor but not more capital.
The motive for the erecting trade barriers to import goods and services from abroad is to
A. improve economic efficiency in that nation. B. protect and benefit special interest groups in that nation. C. reduce the prices of the goods and services produced in that nation. D. expand the export of goods and services to foreign nations.
When electronic digital wristwatches were first introduced in 1972 they were priced at $2,100. If the CPI in 1972 was 42 and the CPI in 2019 is 275, then this price is equivalent to approximately ______________________in 2019 dollars.
A. $20,950 B. $11,650 C. $13,750 D. $245 $321