What is the price elasticity of supply? List and briefly define three cases of the price elasticity of supply
What will be an ideal response?
The price elasticity of supply measures how responsive quantity supplied is to a change in the price of the good. Supply can be price elastic, if the percentage change in the quantity supplied exceeds the percentage change in the price, price inelastic, if the percentage change in the quantity supplied is less than the percentage change in the price, or unit elastic, if the percentage change in the quantity supplied equals the percentage change in the price.
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Accountants do not calculate __________ differently than do economists. a. Total revenue
b. Total costs. c. Profits. d. Any of the above.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If the central bank increases the money supply, in the short run, the price level
a. and unemployment rise. b. rises and unemployment falls. c. falls and unemployment rises. d. and unemployment fall.
Total utility is the total amount of ______ derived from the consumption of a certain number of units of a good or service.
a. choice b. income c. satisfaction d. fairness