In Exhibit 5-9, the price elasticity of supply for good X between points A and E is:

a. 3/5 = 0.60.
b. 5/3 = 1.66.
c. 1/2 = 0.50.
d. 1.


a

Economics

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If the production of a particular good causes a negative externality, would the equilibrium quantity in a competitive market be less than the efficient quantity or would it be greater than the efficient quantity?

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If inflation in country A exceeds inflation in country B, we can express the percentage change in the units of currency of country A per unit of currency of country B as:

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A horizontal demand curve for a firm implies that

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Economics