The price elasticity of supply is higher when
A. the number of buyers in the market decreases.
B. the product in question is an inferior good.
C. producers have more time to adjust to price changes.
D. the number of buyers in the market increases.
Answer: C
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A speculator who incorrectly anticipates the future
A) cannot inflict a loss on others because one person's loss must be someone else's gain. B) incurs a personal loss but benefits everyone else. C) inflicts a loss on others and incurs a personal loss. D) makes a personal profit but inflicts a loss on others.
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above
If the Fed wishes to increase the interest rate, it can do so by
a. selling bonds b. buying bonds c. increasing the money supply d. setting a higher prime lending rate e. encouraging the public to buy bonds
The demand curve for a monopolistic competitor is likely to be steeper than that of a monopolist
a. True b. False Indicate whether the statement is true or false