Suppose the price elasticity of supply for crude oil is 2.5. How much would price have to rise to increase production by 20 percent?
A. 45 percent
B. 12.5 percent
C. 20 percent
D. 8 percent
Answer: D
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A demand curve is derived from
A) the production possibilities curve. B) consumer's income. C) a demand schedule. D) an equilibrium.
All evidence points to the fact that firms' market power within an industry and industry concentration ratios are
a. directly related, that is, firms' market power is high when concentration ratios are high b. inversely related, that is, firms' market power is low when concentration ratios are high c. totally unrelated, that is, they are directly related in some industries and indirectly related in others d. only moderately related, depending on the degree of competition in the industry e. low for monopoly and high for perfect competition
According to Modigliani's life-cycle hypothesis, the
a. MPC for young adults is relatively low b. middle-aged experience their highest and most rapidly growing MPCs c. MPC falls during middle-age d. MPC falls during old age e. MPC is constant throughout a lifetime
Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000 . Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500
a. Upland has higher productivity and higher real GDP per person than Lowland. b. Upland has higher productivity but lower real GDP per person than Lowland. c. Upland has lower productivity but higher real GDP per person than Lowland. d. Upland has lower productivity and lower real GDP per person than Lowland.