If the percentage change in the price of a good exceeds the percentage change in the quantity supplied, then the supply is
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly elastic.
E) perfectly inelastic.
B
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The classical economists assumed that
A) wages and prices were inflexible, especially downward. B) government intervention in the economic system was necessary and helpful. C) monopoly was widespread in the economy. D) wages and prices were flexible.
If the Federal Reserve is interested in conducting contractionary policy, what types of policies should it consider?
What will be an ideal response?
Which of the following is most likely to be a fixed input in the short run for Joe's Garage?
a. the grease used to lubricate cars b. the part-time labor employed to repair cars c. the inventory of replacement parts d. the electricity used to heat and light the garage e. the garage used to repair cars
Which Federal Reserve Bank president is always on the Federal Open Market Committee?
A) New York B) Chicago C) St. Louis D) Boston