"Price elasticity of supply" is defined as
What will be an ideal response?
the percentage change in the quantity supplied divided by the percentage change in the price.
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A good that has external benefits associated with its production will be
A) produced at the optimal level. B) underproduced. C) overproduced. D) not produced.
Stan owns a software design business. He does not have time to expand his office space or redesign the layout of his office
He can increase the amount of work he does by working more hours, asking his current employees to work more hours, or hiring more employees. The relationship between Stan's inputs and the maximum output his firm can produce is called his A) short-run production function. B) cost function. C) long-run production function. D) production possibilities frontier.
If a firm is producing no output in the short run, then its total costs are zero
Indicate whether the statement is true or false
The formula for aggregate expenditure is
A) AE = C + I + depreciation - NX. B) AE = C + I + G. C) AE = C + I + G - NX. D) AE = C + I + G + NX.