Why is the price elasticity of supply greater if there is more time for adjustment to an increase in the price of an item?
What will be an ideal response?
If more time is available for adjustment to a price increase, then more resources can flow into an industry, and more firms can enter the industry. Thus, after a longer period of time a greater expansion of production can take place in response to the rise in the price of the item.
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What is a "debtor nation?" Is the United States a debtor nation?
What will be an ideal response?
Comparative advantage matters most in determining the efficient distribution of production over the world
a. True b. False Indicate whether the statement is true or false
Taylor spends all of her income on tank tops and running shoes, and the price of a pair of running shoes is four times the price of a tank top. In order to maximize total utility, Taylor should buy
a. four times as many tank tops as pairs of running shoes. b. four times as many pairs of running shoes as tank tops. c. both items until the marginal utility of a pair of running shoes is four times the marginal utility of a tank top. d. both items until the marginal utility of a tank top is four times the marginal utility of a pair of running shoes.
unemployment compensation and welfare payments
What will be an ideal response?