Suppose the price elasticity of supply for Good A is 0.7 and the price elasticity of supply for Good B is 1.7 . Given these values, which of the following statements is accurate?
a. Good A has an inelastic supply curve, while Good B has an elastic supply curve.
b. Good B has an elastic supply curve, while Good B has an inelastic supply curve.
c. Both Good A and Good B have an elastic supply curve.
d. Both Good A and Good B have an inelastic supply curve.
a
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Suppose the socially-optimal quantity of good x is larger than the market-equilibrium quantity of good x. Does the production of good x convey a positive externality or does it convey a negative externality?
What is the present value of $100 one year from now at an interest rate of 5%?
A) $5 B) $95.24 C) $100 D) $105
If both Real GDP and the general price level fell following the September 11th terrorist attack,
A. the negative aggregate supply shock was smaller than the negative aggregate demand shock. B. both the aggregate supply shock and the aggregate demand shock must have been, ironically, positive. C. the aggregate supply shock was negative, but the aggregate demand shock must have been positive. D. the negative aggregate supply shock was larger than the negative aggregate demand shock.
In recent years new automobile factories have opened in California and Ohio and closed in Detroit where the unemployment of automobile workers has increased. This unemployment could be decreased if
A) "moving costs" from Detroit to California and Ohio were reduced. B) information about the new jobs was made available to the unemployed workers at reduced cost. C) workers with the appropriate skills were relatively scarce in Ohio and California. D) all of the above.