A measure of the responsiveness of quantity supplied to changes in price is known as _____
a. cross-price elasticity
b. price elasticity of demand
c. price elasticity of supply
d. income elasticity
e. point elasticity
c
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Describe the four determinants of exchange rates in the long run
What will be an ideal response?
Consider the relationship given by QCars = 100 + 4 × PCars - 2 × PSteel - 0.2 × PWorkers, where QCars is the quantity of cars supplied (in thousands), PCars is the price of cars (in thousands of dollars), PSteel is the price of steel, and PWorkers is the wage earned by autoworkers. If the price of steel is $10 per unit and the price of workers (the wage) is $20, how many cars will be supplied if the price of cars is $20,000?
A. 96,000 B. 156,000 C. 204,000 D. 960,000
A rapid increase in the number of workers, other things the same, is likely in the short term to
a. raise real GDP per person, but decrease real GDP. b. decrease both real GDP and real GDP per person. c. raise both real GDP and real GDP per person. d. raise real GDP, but decrease real GDP per person.
Related to the Economics in Practice on page 196. The search engine business, which includes companies like Google and Bing, is subject to economies of scale. This means that as the use of a search engine such as Google ________, the long-run cost to provide additional searches on this engine will likely ________.
A. increases; rise B. decreases; fall C. increases; fall D. increases or decreases; stay the same