A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals
A) 1.
B) 0.
C) 2.
D) Not enough information.
D
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Refer to the figure above. If there is downward wage rigidity in the market, what will be the unemployment in the market after the demand curve shifts to LD2?
A) 20 units of labor B) 5 units of labor C) 10 units of labor D) 15 units of labor
The higher the marginal propensity to consume, the
A) smaller will be the simple multiplier. B) more insulated will be consumption spending from exogenous shocks to the economy. C) less effective will be any given monetary or fiscal policy. D) more unstable the economy will be.
Suppose that the supply and demand of wheat depend on the price of wheat (p), the amount of annual rainfall (r), and the level of disposable consumer income (I)
The equations describing the supply and demand curves are given by: QS = 20r + 100p QD = 4000 - 100p + 10I Sketch a graph of the supply and demand curves for wheat and show the effects of an increase in the quantity of rainfall. How does each curve shift (if at all) from the increase in rainfall? What does this shift do to the equilibrium price and quantity (increase/decrease)?
Which of the following can shift the labor demand curve to the right?
a. Decrease in product price. b. Increase in wages. c. Decrease in wages. d. Decrease in the MP. e. Increase in productivity.