The price elasticity of supply of laptop computers equals 1.5 if
A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent.
B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price.
C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops.
D) for every $1.00 that laptops increase in price, computer makers produce another 150 laptops.
C
You might also like to view...
When long-run average costs increase as output increases, there are
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) constant marginal costs.
In general, the most efficient taxes:
A. are often not the most equitable. B. are often the most equitable. C. raise the most revenues. D. do not raise the most revenues.
What is meant by a "discriminating monopolist"?
a. The firm discriminates on the basis of hiring workers. b. The firm violates all antitrust laws. c. The firm evades taxes. d. The firm sells its product at different prices in different markets.
When the nominal exchange rate falls,
A. the domestic currency buys fewer units of foreign currency and the domestic currency has appreciated. B. the domestic currency buys fewer units of foreign currency and the domestic currency has depreciated. C. the domestic currency buys more units of foreign currency and the domestic currency has appreciated. D. the domestic currency buys more units of foreign currency and the domestic currency has depreciated.