The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent.
B. 8 percent and quantity supplied rises by 8 percent.
C. 10 percent and quantity supplied remains the same.
D. 7 percent and quantity supplied rises by 5 percent.
Answer: D
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Which of the following is uncharacteristic of monopolistic competition in the long run?
a. a large number of sellers in the industry b. zero economic profits c. price in excess of marginal cost d. firms have no excess capacity
Sue's Bagel Shop wants to estimate how responsive the demand for bagels is to a change in her cream cheese prices. To accomplish this task, the following data would not be needed:
a. percentage change in bagel prices b. original price of cream cheese c. new quantity of bagels sold d. original quantity of bagels sold e. new price of cream cheese
A government surplus has the effect of :
a. Increasing the demand for real loanable funds, increasing the real risk-free interest rate, and increasing the quantity supplied of real loanable funds per period. b. Increasing the supply of real loanable funds, reducing the real risk-free interest rate, and increasing the demand for real loanable funds. c. Decreasing the supply of real loanable funds, increasing the real risk-free interest rate, and decreasing the quantity demanded of real loanable funds per period. d. Decreasing the supply of real loanable funds, increasing the real risk-free interest rate, and decreasing the demand for real loanable funds per period. e. Increasing the supply of real loanable funds, reducing the real risk-free interest rate, and increasing the quantity demanded of real loanable funds per period.
The firm's supply curve in the short run is given by
A) The segment of the marginal cost curve above average variable cost. B) The segment of the marginal cost curve above the break-even price. C) The segment of the marginal cost curve above average total cost. D) None of the above.