If a product has a short-run elasticity of supply equal to zero, then an increase in the demand for the product will:
A. Have no effect on price or quantity sold
B. Increase price and leave quantity sold unchanged
C. Increase price and reduce the quantity sold to zero
D. Leave the price unchanged and reduce the quantity sold
B. Increase price and leave quantity sold unchanged
You might also like to view...
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Has Tom made the best decision?
A. Yes, because he's earning an accounting profit of $35,000. B. No, because he's earning an economic profit of $6,000. C. Yes, because his accounting profit is larger than his economic profit. D. No, because his accounting profit is larger than his economic profit.
What does price do?
What will be an ideal response?
Why might spending on basic literacy for girls have a social return that exceeds the private return?
What will be an ideal response?
The policy directive from the FOMC is carried out by
A) the presidents of the district banks. B) the presidents of commercial banks that are members of the Federal Reserve System. C) the account manager at the Federal Reserve Bank of New York. D) private dealers in the bond market.