If the price elasticity of supply is 0.4, and a price increase led to a 5% increase in quantity supplied, then the price increase is about
a. 0.25%.
b. 1.2%.
c. 2%.
d. 12.5%.
d
You might also like to view...
With perfect price discrimination, the level of output
A) exceeds the efficient quantity. B) is the same as the amount produced by any monopoly that price discriminates. C) is the same as the amount produced in a perfectly competitive market. D) equals the amount produced by a single-price monopoly. E) is unknown.
One way to decrease leverage is increasing capital
a. True b. False.
Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics
a. True b. False Indicate whether the statement is true or false
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. VCU2 can purchased with legal tender, but it cannot be sold for legal tender. VCU3 can be purchased with and sold for legal tender. d. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. e. In terms of spending potential, there is no difference; both VCU2 and VCU3 can be spent in the real world.