The price elasticity of supply is 0.6. This means that
A. a 10 percent increase in quantity will occur when price increases by 0.6 percent.
B. a $10 increase in price would increase quantity supplied by 60.
C. a 10 percent increase in price would increase quantity supplied by 6 percent.
D. a 10 percent increase in quantity will occur when price increases by 60 percent.
Answer: C
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The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by
A) a change in interest rates, which changes investment. B) a change in interest rates, which changes the money supply. C) leading to shifts of the short-run aggregate supply curve. D) changing consumer consumption behavior as they adjust to a change in the number of dollars available.
The supply curve shows the relationship between the
A) cost of production and the price of the product. B) cost of resources and cost of production. C) price of the product and quantity supplied. D) quantity demanded and the quantity supplied.
The two most important actors of the economy are:
A. land and capital. B. households and firms. C. firms and capital. D. exports and imports.
why do foreigners export goods and services to buyers in the United States?
What will be an ideal response?