If the price elasticity of supply of a good is? 2, a 200 percent increase in the price of the good will change the quantity supplied by? ________.
A. 400 percent
B. 200 percent
C. 100 percent
D. 50 percent
Answer: A. 400 percent
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Instituting a rent control program will most likely lead to
A) a shortage of rental units. B) overly elaborate and expensive construction. C) an efficient allocation of existing units among consumers. D) an excess quantity supplied of rental units.
The term “laissez-faire” was given to a system of free markets by
A. twentieth-century American economists. B. a seventeenth-century Scottish economist. C. eighteenth-century French economists. D. nineteenth-century Italian economists.
Some companies resolve service failures so successfully that customer satisfaction actually increases following a disruption. What is this known as?
a. Service recovery paradox b. Emergency relief system c. Customer satisfaction paradigm d. Efficiency planning
The idea that individuals can reach an efficient equilibrium through private trades, even in the presence of an externality, is called:
A. market failure. B. trade quotas. C. the invisible hand. D. the Coase theorem.