A price elasticity of supply of 0.56 means that:
a. for every 10 percent change in price, quantity supplied will move in the same direction by 0.56 percent.
b. for every 10 percent change in price, quantity supplied will move in the opposite direction by 0.56 percent.
c. for every 10 percent change in price, quantity supplied will move in the opposite direction by 5.6 percent.
d. for every 10 percent change in price, quantity supplied will move in the same direction by 5.6 percent.
d
You might also like to view...
In 2003, the Bush administration revised the tax bill to include provisions to
A) increase taxes on capital gains. B) delay tax increases from the 2001 bill. C) decrease the child tax credit. D) lower taxes on dividends.
A game in which any gains by the group are exactly offset by equal losses by the end of the game is called the
A) negative-sum game. B) zero-sum game. C) positive-sum game. D) cooperative game.
If it costs a firm $10 to produce a good and the same good sells for $7 abroad, then this firm is engaging in
A) profit maximization. B) price discrimination. C) price differentiation. D) dumping.
Suppose the domestic price (no-international-trade price) of copper is $1.20 a pound in the United States while the world price is $1.00 a pound. Assuming no transportation costs, the United States will:
A. have a domestic surplus of copper. B. export copper. C. import copper. D. neither export nor import copper.