Inelastic supply
What will be an ideal response?
the quantity supplied is not very sensitive to changes in price. Thus, a change in price leads to only a relatively small change in quantity supplied.
You might also like to view...
Why are economists less worried about industry concentration than they once were?
What will be an ideal response?
Adverse selection in insurance requires that
a. all people face the same risk b. potential customers facing more risk are more interested in purchasing insurance c. people are not risk averse d. insurers can tell higher risk people from lower risk people
Jim is negotiating a contract for a labor union. The union wants to increase members' real wages by 4 percent. The inflation rate is predicted to be 7 percent. To attain the union's goal, Jim needs to negotiate a raise in the nominal
a. wage of 4 percent b. wage of 7 percent c. wage of 11 percent d. rate of 3 percent e. rate of 28 percent
The law of one price fails as a result of:
A. similar technical specifications. B. insignificant transportation costs. C. low tariffs. D. goods that cannot be traded.