Migraine medicine increased in price by 6% causing a 1% increase in quantity supplied. Supply is
a. inelastic.
b. elastic.
c. unit elastic.
d. elasticity.
a. inelastic.
You might also like to view...
Paul Romer's theory on the importance of knowledge differs from traditional theory in that Romer
A. argues, that an investment-knowledge cycle exists which requires that investment rates keep increasing or else growth rates will fall, while traditional theory argues that growth rates will not fall, although they will not increase either. B. emphasizes investment rates while traditional theory emphasizes the importance of knowledge as a factor of production. C. argues, that investment is not important in promoting growth, but that the acquisition of knowledge is the sole determinant of economic growth. D. argues that an investment-knowledge cycle allows a once-and-for-all increase in investment to permanently raise a country's growth rate, while traditional theory argues that a once-and-for-all increase in investment leads to a higher standard of living but not to a higher growth rate.
Cost-push inflation can be shown on an aggregate supply aggregate demand diagram as
A. a leftward shift in the aggregate supply curve with no change in aggregate demand. B. a rightward shift in the aggregate demand curve with no change in aggregate supply. C. a rightward shift of the aggregate supply curve with no change in aggregate demand. D. a leftward shift in the aggregate demand curve with no change in aggregate supply.
Direct marketing is
A. advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders. B. advertising intended to reach as many consumers as possible. C. advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio. D. advertising targeted at specific consumers.
In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downsloping because:
A. Fewer British pounds can be purchased if pounds become less expensive B. Fewer U.S. dollars can be purchased if British pounds become less expensive C. More U.S. dollars can be purchased if British pounds become more expensive D. More British pounds can be purchased if pounds become less expensive