Ceteris paribus, if a 20 percent increase in the price of shoes leads to a 10 percent increase in the quantity supplied of shoes, then the price elasticity of supply is equal to _____
a. 2
b. 20
c. 10
d. 0.5
e. 0.2
d
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According to this Application, why did the recent decrease in oil prices have only a modest effect on economic growth?
A) Consumers may have saved the money that resulted from lower gasoline prices. B) There was less incentive to produce energy and invest in new capital and equipment. C) Government spending decreased significantly. D) Both A and B are correct.
One of the monetary policy goals of the Federal Reserve is price stability
Indicate whether the statement is true or false
If total utility is positive, marginal utility must also be positive
Indicate whether the statement is true or false
Which of the following statements is correct?
a. The demand for capital is derived from the demands for outputs. b. The demands for output are derived from the demand for capital. c. The demand for capital is derived from the demand for rent. d. The demand for rent is derived from the demand for capital.