The supply of any good is likely to be inelastic when
A) consumers have few good substitutes for it.
B) it is a manufactured good rather than an agricultural good.
C) it can be produced at low cost.
D) there are very many producers of the good.
E) very little time elapses between the change in price and the change in quantity supplied.
E
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Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, one way to alleviate the externality is that
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.
As inflation rates increase, shoppers will be forced to
a. shop more at a particular store. b. spend less time comparing prices. c. spend less time visiting other stores. d. spend more time comparing prices.
A "puppy boom" and an increase in the price of horse meat would cause the market price of dog food to
A. rise and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes. B. fall and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes. C. rise, fall, or remain unchanged depending on the magnitude of the changes, and the market output to rise. D. rise and the market output to rise .
A consumer is maximizing utility when
A. the consumer has spent all of his income. B. the slope of the budget constraint has reached -1. C. diminishing marginal utility has set in. D. the slope of the budget constraint equals the marginal rate of substitution.