If a 5 percent increase in price causes a 10 percent increase in quantity supplied, then supply is
A. infinite.
B. unit elastic.
C. elastic.
D. inelastic.
Answer: C
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The profit earned by a monopolistic competitor after the entry of new firms is ________
A) higher than the profit earned by the firm before the entry of new firms B) lower than the profit earned by the firm before the entry of new firms C) equal to the profit earned by a monopolist in the long run D) higher than the profit earned by a perfect competitor in the long run
Based on the above figure, up to which level of output will Ike's Ice Cream Kitchen have increasing marginal returns?
A) only at 0 gallons B) up to 10 gallons C) up to 40 gallons D) up to 60 gallons
The producer surplus to a monopolist must be
A) less than zero or the firm is in violation of anti-trust statutes. B) at least as great as the producer surplus in a competitive market. C) positive, otherwise why would the monopoly produce? D) the same as for a competitive market.
An increase in U.S. imports from Mexico will cause a decrease in income for Mexican individuals and businesses
a. True b. False Indicate whether the statement is true or false