Refer to Scenario 3 . Why are elasticities of demand rather than slopes used to measure and compare responsiveness?
What will be an ideal response?
Elasticities are useful because they are unit-free, and one can therefore compare elasticities between different types of goods. In contrast, slopes are not unitless. Hence, comparison between different products is much easier with elasticity.
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In the above figure, if the minimum wage is equal to ________, there would be ________ hours of labor employed
A) $8 per hour; 4,000 B) $8 per hour; 2,000 C) $6 per hour; 3,000 D) $4 per hour; 2,000
Compared to English and colonial vessels, Dutch flyboats:
a. were lighter. b. required smaller crew. c. carried fewer armaments. d. cheaper to build and operate. e. All of the above.
When a freely functioning market is in disequilibrium:
a. the government must set a price ceiling. b. the government must set a price floor. c. the price and quantities demanded and/or supplied change until equilibrium is established. d. it will continue to remain in disequilibrium. e. it will reach equilibrium at a very high/low price.
The long run supply curve for a constant cost industry is:
a. horizontal. b. upward sloping. c. vertical. d. downward sloping.