Suppose that the price elasticity of supply is one and the quantity supplied increases by 5%. Other things being equal, the percentage change in the price should be:
A. a 0.5% increase in the price.
B. a 5% increase in the price.
C. a 0.2% increase in the price.
D. a 2% increase in the price.
Answer: B
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The declining trend in the currency-deposit ratio during 2007-2014 can be explained by
A) the increased holdings of U.S. currency by foreigners. B) bank panics. C) a drop in the rate of interest paid on checking deposits. D) the increasing use of debit cards.
Which is the best example of a nondiversifiable risk for Stalwart Shoes?
A) A project to open a new store in Texas B) A project to open a new factory in Texas C) A project to move into the sock market D) The state of the economy in Texas E) The state of the U.S. economy
Which of the following is an example of an adverse supply shock?
a. a decrease in the money supply b. a tax cut c. a worldwide drought d. decreased government spending
Refer to the table and information below. The average total cost of the firm when 3 units of output are being produced is:
The fixed cost of the firm is $500. The firm's total variable cost is indicated in the table.
A. $350
B. $400
C. $500
D. $700