As the amount of inventories maintained by a firm increases:
A) its elasticity of supply increases.
B) its elasticity of supply decreases.
C) the elasticity of demand for its product increases.
D) the elasticity of demand for its product decreases.
A
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Suppose that elasticity has been reliably measured as 1.55 and the unit price decreases from $20 to $17.50. How much will quantity demanded increase?
What will be an ideal response?
If consumers decide to increase their rate of saving, the
a. supply of loanable funds will decrease b. supply of loanable funds will increase c. demand for loanable funds will decrease d. demand for loanable funds will increase e. interest rate will increase
Goods with few available substitutes tend to have inelastic demand curves
a. True b. False Indicate whether the statement is true or false
Sales taxes, property taxes, and value-added taxes are examples of indirect taxes
a. True b. False Indicate whether the statement is true or false