When the supply elasticity of a product is 2.5, a 10 percent decrease in price will _____ the quantity supplied of the product by _____ percent
a. increase; 25
b. decrease; 25
c. increase; 2.5
d. decrease; 2.5
e. decrease; 4
b
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College students and faculty members have a more elastic demand than the general public for Apple's iMac desktop computers. From this we can conclude that
A) Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members. B) Apple will charge college students and faculty members lower prices than it charges the general public. C) the general public will earn arbitrage profits by buying iMac desktop computers from Apple and reselling them to college students and faculty members. D) Apple will charge college students and faculty members higher prices than it charges the general public.
Poor health in developing countries encourages economic growth because working is a matter of life and death
a. True b. False Indicate whether the statement is true or false
The long-run aggregate supply curve ______.
a. has the same slope as the short-run aggregate supply curve b. has the same slope as the short-run aggregate demand curve c. is perfectly horizontal at the minimum price level in the economy d. is perfectly vertical at the natural rate of output in an economy
At very low levels of disposable income
A. saving is negative. B. saving is very high. C. consumption is negative. D. consumption is a very small part of income.