If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied, then the supply of the good is ________ and the elasticity of supply is ________
A) inelastic; 0.5
B) inelastic; 2.0
C) elastic; 0.5
D) elastic; 2.0
D
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Which of the following always decreases when output increases?
A) total fixed cost B) marginal cost C) average variable cost D) average fixed cost E) total cost
Answer the following statements true (T) or false (F)
1. All goods and services produced during the year are added to the total wealth of the nation. 2. Stocks and bonds are counted as part of total wealth. 3. To understand the purpose of a given economic policy, it is necessary to understand the influence of political and social policies. 4. Economics is an isolated science since it has no relation to other sciences.
Applying elementary economics, mismatch unemployment should fall when relative wages
A) rise. B) fall. C) are more flexible. D) are less flexible.
Perfectly competitive producers do not need to consider how their output levels affect price
Indicate whether the statement is true or false